BERLIN, Oct. 16 (Xinhua) -- Global trade would be weakened by political uncertainty while interest rates would remain at a low level in 2020, the Association of German Public Banks (VOEB) announced on Wednesday.
"Political risks are increasingly being transferred to the global economy. Global trade is showing clear signs of weakness," according to the VOEB capital market strategists.
For Germany, the VOEB is expecting gross domestic product (GDP) to grow between 0.3 percent and 1.2 percent in 2020. For the euro zone, the experts expect growth rates between 0.8 percent and 1.3 percent.
The VOEB economists expect negative rates for Germany's government bonds. According to the association of Germany's public banks, the 10-year bond is set to yield between minus 0.40 percent and minus 0.65 percent in 2020.
Following the "virtual abolition of the positive interest rate", depositors were "not speaking well" of monetary policy by the European Central Bank (ECB), according to the VOEB experts.
"With simple and conservative strategies, it is hardly possible to generate positive earnings in the long term," the VOEB capital market strategists stressed. Returns could even fall further as the political and economic risks of trade conflicts and Brexit continued. Enditem
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