Uncertainty causes more damage than tariffs: economist

Singapore

INSTEAD of a recession, the world economy is headed for a prolonged period of sluggish growth until at least the end of 2020, a senior economist has suggested, as the climate of uncertainty is causing companies to delay investment.

In an exclusive interview with The Business Times, Luigi Speranza, chief global economist at BNP Paribas, pointed to a survey by Bank of England Agents which showed that firms are more likely to defer major spending if they expect Brexit-related uncertainties to be resolved fairly soon.