Q1 2017 global growth was driven by strong growth in the manufacturing sector.
World banks recent economic review shows that global growth predictions of 2.7 percent are still holding, driven by manufacturing, trade and commodity prices.
For 2017 The World Bank had foretasted 2.7 percent growth rate which was projected to be better than 2016 which was at 2.4 percent.
Report states that developed countries are showing economic growth, especially Japan and Europe, while the seven emerging economies – China, Brazil, Mexico, India, Indonesia, Turkey and Russia – continue to show good growth.
Japan’s growth forecast was upgraded by 0.6 percentage point since January to 1.5 percent, while the euro zone’s forecast was increased by 0.2 percentage point to 1.7 percent. Rationale for the upgraded forecast was tied to pickup in exports and unconventional monetary easing “stimulus” are yielding the growth.
U.S., the world’s largest economy had its growth forecast upgraded by a moderate 0.1 percentage point to 2.1 percent. Slow down in consumer spending early in the year was sited however is believed to be temporary.
China’s economic growth forecast remains unchanged at 6.5 percent for 2017.
The World Bank remains concerned that new trade restrictions could create a headwind for the recovery in trade that is benefiting many advanced and developing economies, citing actions being contemplated by the Trump administration and rise of protectionism.
Report also said that exports and investment in Mexico also could be negatively affected by the looming renegotiation of the North American Free Trade Agreement, causing spillovers to Central America as well.
The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.
Ketan Deshpande is also passionate about sustainability and renewable energy; he curates and shares latest updates in his blog posts. Recently the Southern Minnesota Municipal Power Agency(SMMPA) of Litchfield, Minnesota, endorsed Ketan Deshpande for an energy conservation project.
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