Packaged Food: Quarterly Statement Q1 2018

Packaged Food: GDP GROWTH HIGHLIGHTS

US

Stronger than expected growth at theend of 2017 and passage of theRepublicans’ long-awaited tax cuts haveled us to raise US GDP growth forecast to2.3% in 2018 and 2.2% in 2019.

Eurozone

The Eurozone economy outperformed in2017 with private sector optimism closeto levels of the early 2000s. GDP growthwill remain significantly above the trend,reaching 2.2% in 2018 and 1.9% in 2019.

UK

Brexit uncertainty is expected to weighon investments, while low income growthand consumer confidence should depressspending growth. UK GDP is forecast togrow by 1.4% in 2018 and 1.3% in 2019.

Japan

Economic growth in Japan is backed byrobust investment and export demand.However, wage growth remains weakhindering spending. We expect GDP togrow by 1.2% in 2018 and 0.9% in 2019.

China

Strong public investment, robustconsumption growth and improvingforeign demand support growth in China.We have lifted real GDP growth forecastto 6.5% in 2018 and 6.3% in 2019.

Brazil

Low inflation and interest rates, alongwith falling unemployment, supportconsumer spending in Brazil. GDP growthhas finally turned positive, and is likely toreach 2.4% in 2018 and 2.5% in 2019.

Russia

Russia’s economic rebound has turnedsofter than expected, despite the steadyincrease in oil prices. Real GDP growthforecast has been downgraded to 1.3% in2018 and 1.7% in 2019.

India

India’s economy has started to lift upfrom the joint disruption ofdemonetisation and GST reforms. Furtherstrengthening is likely with GDP growthof 7.4% in 2018 and 7.5% in 2019.