Global economy has proved resilient - NAB

Analysts at NAB suggests that while growth remains sub-trend, the global economy has also proved resilient.

Key Quotes

“Output has continued to grow, despite a series of financial and political shocks this year. However, 2016’s growth has been concentrated into just three countries –the US, China and India – and that looks set to persist. Monetary policy in the big advanced economies is shifting toward gradual rate rises (in the US), cutbacks in asset buying (Euro-zone) or more of the same, rather than yet more stimulus (UK, Japan).”

“Global long bond yields are already turning up and the USD should appreciate further as markets digest the change in US economic policy. Our view is for global growth to modestly accelerate from 2016’s 3% to 3¼% in the following two years. However, high debt burdens, further political uncertainty – particularly next year’s Euro-zone elections – pose big risks to the outlook.”