Month Ending May 2018
The global economy continues to expand at a solid pace, with the International Monetary Fund (IMF) noting in its latest report (World Economic Outlook, April 2018) that ‘global growth seems on track to reach 3.9% this year and next, substantially above our October forecast. Helping to drive this output acceleration is faster growth in the euro area, Japan, China and the United States, all of which grew above expectations last year (2017), along with some recovery in commodity exporters’. The IMF also noted that ‘growth in the second half of 2017 was above 4%, the strongest since 2010, supported by a recovery in investment’. As it also pointed out, ‘the ongoing recovery in investment could foster a rebound in productivity, implying higher potential growth going forward’.