World Economy Moving Sideways, Subdued Demand
World Economic Update – October 2016
One Tuesday, October 4, the International Monetary Fund released its biannual World Economic Outlook report for October, which is a widely watched indicator of global activity. The October report continued to show slow growth across the globe.
“Global growth remains weak, even though it shows no noticeable deceleration over the last quarter,” said Maurice Obstfeld, Economic Counsellor and Director of Research at the International Monetary Fund. “The new World Economic Outlook sees a slowdown for the group of advanced economies in 2016 and an offsetting pickup for emerging and developing economies.”
- Baseline projection for global growth in 2016 is a modest 3.1 percent, broadly in line with last year, and a 0.1 percentage point downward revision relative to the April 2016 World Economic Outlook Update.
- The downward projections for 2016 are fueled by slower U.S. growth and the U.K.'s decision to leave European Union.
- Emerging markets and developing economies will be a bright spot with growth expected to strengthen after years of decline.
- Growth has been too low for too long, and in many countries its benefits have reached too few, with political repercussions that are likely to depress global growth further.
Want to know more about the top trends in the key world markets? Check out the World Economic Update from Monster Intelligence.