The World Economy - forecast summary

| Publication date: 1 Feb 2017 | NIESR Author(s): Hacche, G; Carreras, O; Kirby, S; Liadze, I; Piggott, R; Warren, J | Journal: National Institute Economic Review Issue 239 | Publisher: Sage Publications, London
  • 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.