The World Economy and the Euro Area: Despite Risks, Global Recovery Is Stabilizing: DIW Economic Outlook

Ferdinand Fichtner, Guido Baldi, Christian Dreger, Hella Engerer, Stefan Gebauer and Malte Rieth ()

DIW Economic Bulletin, 2017, vol. 7, issue 24, 231-233

Abstract: Global economic output is expected to grow by 3.7 percent this year, and with a slightly stronger dynamic in the coming year; both predictions match the figures proposed in DIW Berlin’s spring forecast, even though the year started off somewhat weaker than expected. But overall, economic recovery continues. Despite rising inflation rates, private consumption remains one of the main drivers in the developed countries, primarily due to the fact that more and more people are getting jobs. In the U.S. and Europe, corporate investment activity is once again picking up momentum. But although the elections in France and the Netherlands yielded positive outcomes with regard to the cohesion of the EU, and thus helped reduce the widespread unease, there remain risks for the global economy: the Brexit negotiations and the uncertainty surrounding the possible new elections in Italy are curbing the spending of both companies and consumers alike. Moreover, the emerging countries could be affected by capital outflows resulting from the U.S. Federal Reserve’s interest rate hikes.

Keywords: Business cycle forecast; economic outlook (search for similar items in EconPapers)
JEL-codes: E32 E66 F01 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_ ... n_bull_2017-24-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:diw:diwdeb:2017-24-2

Access Statistics for this article

More articles in DIW Economic Bulletin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().