Strengthening DM consumption to be a global bright spot in coming months

Global GDP accelerated through much of 2014 before stumbling at year end. After reaching 4% qoq (saar) in 3Q14, global growth slowed to 2.7% and 2.5% in 4Q and 1Q15, respectively. 

There are a number of short-term threats to the global economy, from the fallout of Greek brinkmanship to El Nino climatic impacts and the MERS health crisis in Asia. On the other hand, consumption growth seems to be picking up in DM.

"Supported by solid labor market recoveries, we look for strengthening consumption in DM to be a global bright spot in coming months. We expect DM GDP growth to rise from 1.6% to 1.9% in 2015 and 2.5% next year, while EM slows from 4.3% to 4.1% this year before climbing to 4.8% in 2016." says BofA Merrill Lynch