World economy expected to grow 3.1% in 2017 and 3.5% in 2018

Key points

• Global economic growth is forecast to pick up from 3.0 per cent in 2016 to 3.1 per cent in 2017 and 3.5 per cent in 2018 – a slightly weaker acceleration than projected last November.
• The unexpected result of the US presidential election has dominated recent financial market developments, with hikes in bond yields, a further appreciation of the US dollar, and rises in stock market prices reflecting expectations of US tax cuts, infrastructure spending, deregulation and trade measures.
• Our forecast assumes established policies. Potential policy changes in the US and any response in the rest of the world therefore pose significant risks to our projections.