March is shaping up as a crucial month for the global economy.
He is expected the next few weeks to offer clarity on a trade agreement between the United States and China, the fate of Britain within the European Union and any signs of economic recovery from the Asian giant. At the same time, the President of USA, Donald Trump, discusses a report that could convince him to apply tariffs to Japanese, and European automobiles while the Federal Reserve, the European Central Bank and the Bank of Japan will decide on monetary policy . And the list goes on.
US points to a summit which will be held in mid March between Trump and his Chinese counterpart, President Xi Jinping, and the Economic Adviser to the White House, Larry Kudlow, spoke of a potential ‘historic agreement’.
If a treaty is closed, the relief may be short-lived if Britain abandons the EU on March 29 without a divorce agreement, worsening a broader region-wide slowdown.
March is the month of the National Popular Assembly of China, in which the legislature will approve the economic plan of the Government for the year. The central announcement will be annual growth target. Some economists expect China to set a goal of low expansion, either around 6 percent or 6 to 6.5 per cent, below the figure close to 6.5 percent in the last two years.
In addition, in the coming weeks will be published important data of the second global economy, which will reveal whether he is responding to a relaxation of policy after months of encouragement.
«The March data should begin to show that china’s economy is recovering,» said Alicia García Herrero, Chief Economist for Asia Pacific of Natixis in Hong Kong. «Otherwise, we might begin to worry».
The way in which events develop will dictate the mood of investors after a difficult year start. The International Monetary Fund in January slashed its forecast for the world economy in 2019 and projected to grow at the weakest pace in three years.