Growth to get a boost next year
Labour market remains tight
Inflation nudging higher
Monetary policy on hold
Fiscal policy set to become more stimulatory
External accounts still in good shape
The slowdown in growth over 2019 has proven to be both longer and deeper than we expected at the start of the year. Global factors were mostly to blame as ongoing trade wars sapped confidence and delayed investment and hiring.
Next year should see modestly higher growth off the back of accommodative monetary conditions, fiscal expansion, an improvement in global growth and stabilisation/recovery in business confidence. However, capacity constraints will continue to persist, capping any significant resurgence in growth.
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