Brexit to shave global growth forecasts by 10 to 20 bps in 2016 and 2017 - NAB

Research Team at NAB, suggests that the Brexit, the latest in a series of shocks to global financial markets, leads up to shave our global growth forecasts by 10 to 20 bps in 2016 and 2017.

Key Quotes

“Annual global growth should average around 3% over the forecast horizon, a lacklustre performance that falls well below its long run trend. China, India and the US remain key drivers of growth with softer conditions across Japan and the rest of E Asia, Latin America and W Europe. With little evidence of inflation pressures central banks can keep interest rates very low by historical standards.

The global trading environment for Australian business looks set to remain subdued but the degree of global softness should be kept in perspective – this is a long flat period for growth as the global economy recovers from the GFC, it is not a recession.”