The world economy grew by 3.0 per cent in 2015, as indicated in our last two forecasts. It is now projected to grow only slightly faster this year, by 3.2 per cent, and by 3.8 per cent in 2017.
In the advanced economies, the modest and uneven recovery is expected to continue, while many major emerging market economies continue to face significant challenges, with slower growth in some cases and deep recessions in others.
The renewed decline in global oil prices in the past three months, accompanied by sharp falls in equity prices worldwide, have increased uncertainty about the global economic outlook.
Recent falls in oil and other global commodity prices will lower inflation again in the short term, but should boost global demand while increasing the challenges faced by commodity producers.