Global: Do not expect much improvement in growth – NAB

Research Team at NAB, suggests that despite signs of stabilisation in areas of the world where economic activity has been weak, there is little evidence of new growth engines appearing that could pull economic growth out of the doldrums.

Key Quotes

“Consequently, we do not expect much improvement in global growth from the sub-trend 2¾% recorded since late 2015. Sub-trend growth and below target inflation means that central banks are under little pressure to lift their policy interest rates off historically low levels.

The Fed should continue its ultra-cautious tightening with a rate hike in December but in the UK, Japan and Euro-zone the odds are skewed more to monetary loosening than interest rate increases. While global growth has been disappointingly sluggish, output expansion has continued through numerous shocks – Brexit, 2015’s Chinese currency and share market volatility and the early 2016 growth concerns to name just three.”