Research Team at NAB, suggests that although some of the risks hanging
over global markets have abated, recent global economic growth and the
outlook remains lacklustre.
Key Quotes
“Global growth remains stuck around the 3¼% seen since mid-2012 as lower commodity prices, capital flow reversals and central banks focused on getting inflation back toward target take a toll on the pace of expansion in the big emerging market economies that have underpinned most global growth.”
“Euro-zone inflation is also below target and the European Central Bank (ECB) has announced another round of policy easing. The ECB has again cut its inflation projections, with it not hitting the target until 2017. The Bank of Japan also faces inflation well below target but has not announced another round of policy easing as it still seems convinced that it has done enough for now, a view which looks doubtful.”
“While we have slightly lowered our growth forecasts for Japan, Brazil and a few East Asian economies to take account of worse than expected September quarter outcomes, the changes are not big enough to alter our global forecasts; 3% in 2015 (well below trend), 3.2% in 2016, and 3.3% in 2017.”
Key Quotes
“Global growth remains stuck around the 3¼% seen since mid-2012 as lower commodity prices, capital flow reversals and central banks focused on getting inflation back toward target take a toll on the pace of expansion in the big emerging market economies that have underpinned most global growth.”
“Euro-zone inflation is also below target and the European Central Bank (ECB) has announced another round of policy easing. The ECB has again cut its inflation projections, with it not hitting the target until 2017. The Bank of Japan also faces inflation well below target but has not announced another round of policy easing as it still seems convinced that it has done enough for now, a view which looks doubtful.”
“While we have slightly lowered our growth forecasts for Japan, Brazil and a few East Asian economies to take account of worse than expected September quarter outcomes, the changes are not big enough to alter our global forecasts; 3% in 2015 (well below trend), 3.2% in 2016, and 3.3% in 2017.”
