The global recovery has slowed this year but is likely to accelerate again during the coming quarters. We expect world GDP growth to be only 2½% for 2015, using our own estimates for China, but to pick up to over 3% in both 2016 and 2017. China itself already appears to be recovering as policy stimulus takes effect. Meanwhile, growth and inflation will remain low in the euro-zone and Japan, prompting central banks in both economies to step up the pace of their asset purchases. But the US economy is relatively strong and, as fears of a global downturn fade, the Fed is likely to raise policy rates more rapidly than expected.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services