Risk aversion in financial markets is a threat to growth

Risk aversion is currently very high in financial markets and the causes of this high risk aversion (Brexit, slowdown in growth , geopolitical tensions, Italian crisis , etc.) are set to persist . High risk aversion in financial markets is a threat to global economic growth , due to: Wealth effects; The rise in risk premia and in the financing cost of the economy; The resulting volatility in capital flows and exchange rates. So thi s high risk aversion in financial markets must absolutely be factored in when preparing growth forecasts for 2019.