Given the US-China trade war, EIU expects more tariffs to be introduced.
According to The Economist Intelligence Unit’s (EIU) report, the global retail market’s sales growth in terms of volume is expected to decline to 2.2% in 2020 from 2.5% this year. However, the growth in US dollar terms will accelerate by 4.8% touching $20.2 trillion.
This divergence “will reflect different regional trends in demand, pricing and exchange rates”, with developing markets outperforming developed ones. Though Asia is predicted to comprise 45% of retail sales in 2020, its volume sales growth is expected to drop to 3.3% from 3.8% in 2019.
Asia will continue to outpace Europe and North America, while facing multiple geopolitical challenges. EIU’s Shveta Sharma says that online retail driven by social media apps and improved digital payment systems will dominate brick-and-mortar stores.
[2 minute read]