The global economy in 2016 looks set to continue to recover only slowly, with headline growth remaining disappointing. The world faces mounting risks this year: the China slowdown, as well as those of other large emerging markets such as Russia and Brazil; and instability in the Middle East will continue to cloud the horizon. Divergence will remain a key theme for the year.
Whilst 2016 will not be a stellar year for the global economy, we should see its pace of growth accelerate somewhat:
- The US economy should be a key driver of global growth whereas the eurozone and Japan continue to face stronger headwinds;
- Emerging markets will face divergent fortunes in 2016. Large economies such as Russia and Brazil are in crisis, but others such as India are in a stronger position;
- The China slowdown will continue to exert a negative impact on the global economy through flow-on effects on trade, but also because of its impact on confidence;
- The pace of interest rate rises in the USA (and interest rate policy in other advanced economies such as the UK and eurozone) will be keenly watched across the year with the impact on emerging markets of particular interest;
- Weak commodity prices will continue to weigh on commodity exporters, whilst benefitting net importers.
Our webinar will take place on: Thursday, February 25th at 9 a.m. CST / 3 p.m. GMT