2020 is not the year of recession, but is a year in which the global economic recovery will continue, according to State Street Global Advisors' latest Global Market Outlook. 

State Street Global Advisors has predicted real GDP growth of 3.4% globally - an increase on its previous forecast of 3.2%. However it cautions that there are, of course, substantial risks. 

These risks include trade tensions, Brexit, Iran, US impeachment proceedings as well as the policy response and the pace of structural reform. 

It also identifies climate as a key force that poses substantial risk, and one which a one year outlook may not capture.

State Street said that at a country level, petro-states are under pressure to reinvent themselves in time. 

For individual corporations - from drilling companies, to diesel-engine manufacturers, to transportation firms, to banks - climate change and climate-related regulation will impact business models and supply chains, sometimes in unexpected and unpredictable ways," it added. 

The regulatory pressure and carbon pricing initiatives are likely to accelerate, so investors will have to start planning for this, according to Des Lawrence, senior investment strategist with State Street Global Advisors Ireland.

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