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As 2018 ends and 2019 starts, there are strong grounds for caution as to what the next 12 months will be like and what events may transpire.

The latest Economic Conditions Snapshot, December 2018 from McKinsey & Co shows increasing pessimism  about the overall economic outlook from executives around the world whether reflecting on their own domestic situation or globally.  While there is some glimmer of optimism in India and Latin America, overall executives are glum about the next 12 months whether in developed-economies or emerging economies.

The key risks are defined as being related to policy and politics and are considered 'the most pressing threats'.  The most commonly cited examples being trade policy, a China economic slow-down and the United Kingdom's exit from the European Union. Transitions in political leadership and geopolitical instability are the second most cited concern. Of particular note, rising interest rates have largely fallen ranking only fifth of the five most pressing issues.

Happy New Year !