Global economic growth likely to accelerate further in 2018

In 2017, the global economic growth has rebounded by 0.5 percentage points to 3.5 percent, underpinned by rising positivity as political risks have waned and labor markets have improved further. Towards the end of the year, the global economy is expected to continue grow strongly, according to DNB’s MacroScore points. The U.S. and the euro area have been recording strong data.

“We expect global growth to edge up further in 2018, lifted by a positive trend for emerging markets as a whole”, stated DNB.

However, China is expected to see a government-induced, moderate slowdown. For advanced economies, the pace of growth is likely to be stable at 2 percent, which is strong, considering a low “normal’ because of slow population and productivity growth.

Meanwhile, wage growth rise is expected to be moderate despite continued growth above trend in major advanced economies, and continued improvement in the labor markets. Core inflation is expected to stay below central banks’ 2 percent targets.

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