IBERSOL Annual Report 2018

ANNUAL REPORT 2018 Global Situation Recent IMF forecasts point to a weakening of the world’s economic expansion, which is thought to have grown 3.7% in 2018, a rate which should decrease in 2019 (3.5%) and in 2020 (3.6%), as was already no- ticeable in the second semester of 2018, due to a combination of fac- tors: a breach in the trust of economic operators due to an increase in trade tensions; political uncertainty in Europe (specifically regarding Brexit); a tightening of conditions in financial markets and expectations regarding the slowdown of the Chinese economy. This growth pattern reflects a general adjustment of the economic growth rate, which persists in the advanced economies but is temporary in emerging and developing economies. The GDP (Gross Domestic Product) of the USA grew 2.9% in 2018, with more moderate growth of 2.5% and 2% expected for 2019 and 2020, as the effects of tax cuts wear off. The economy is expected to remain robust, supported by internal demand. The economy of the Euro Zone grew by 1.8% in 2018, far from the 2.4% registered in 2017, reflecting a less favourable external context. A posi- tive trend in private expenditure is expected to lead to growth of 1.6% in 2019 and 1.7% in 2020. ECONOMIC CONTEXT 25