International Monetary Fund, (2016), “World Economic Outlook: Subdued Demand: Symptoms and Remedies”, IMF, October
Global growth is projected to slow to 3.1 percent in 2016 before recovering to 3.4 percent in 2017. The forecast, revised down by 0.1 percentage point for 2016 and 2017 relative to April, reflects a more subdued outlook for advanced economies following the June U.K. vote in favor of leaving the European Union (Brexit) and weaker-than-expected growth in the United States. These developments have put further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer. Although the market reaction to the Brexit shock was reassuringly orderly, the ultimate impact remains very unclear, as the fate of institutional and trade arrangements between the United Kingdom and the European Union is uncertain.
Relevant Posts
- World Economic Outlook (WEO) Update, (2016), “Subdued Demand, Diminished Prospects”, IMF, January
- IMF, (2015), “World Economic Outlook”, IMF Research, 6 October