The global economy is facing multiple risks in 2020, threatening international trade, and presenting strategic dilemmas to companies of all sizes. To alleviate such risks, we must understand what they are. This blog focuses on identifying the top three global risks to help businesses around the world.
1. COVID-19 Pandemic
The main risk currently faced by the global economy is the COVID-19 pandemic. This disease has already infected more than 29 million individuals and killed over 900,000 people around the world. Not surprisingly, it is affecting international trade, and naturally the global economy as well. According to UNCTAD, the economy could lose out on $50 billion in just exports alone. This pandemic is the biggest threat yet for 2020.
2. Geopolitical Issues
Another issue that threatens to derail the economy is geopolitical uncertainty. The ongoing trade war between the US and China has already harmed international businesses. Although the two parties have attempted to reconcile their differences to an extent, there are still plenty of unresolved matters. Similarly, because the UK left the EU back in January 2020, the country is still in a transition period and may need to renegotiate its trade agreements. These geopolitical issues could prove to be major hurdles for the global economy of 2020.
3. Climate Change
Climate change has been an ongoing issue for several years. In 2019, the world faced many floods and droughts due to the changing environmental balance. It is expected for such events to continue for the rest of 2020, and recent wildfires and continuous use of gas emissions have only worsened the environment. Although several countries have made pledges related to controlling their emissions, there is still a long way to go.
To mitigate all these risks, traders may need to redefine their strategies and seek help from external sources. For more information, visit EXIMA and get all the help you need.