Global: Reflation of the economy continues - NAB

Although the pace of global economic growth stabilised in early 2017, the reflation of the global economy continues, according to the analysts at NAB.

Key Quotes

“Business surveys remain overwhelmingly positive in the big advanced economies and the timeliest “hard” economic data on new orders, industrial output and trade flows point to continued growth. Meanwhile, a lift in global prices has eased fears of deflation, although commodity markets have been softening recently, which should feed into lower rates of industrial cost inflation. Wage growth has remained surprisingly subdued, despite sizeable falls in unemployment in several economies.”

“Our forecasts point to a further modest lift in global output growth, despite disappointing first quarter outcomes in some big economies. We expect growth to lift from 2016’s near 3% rate to 3¼% this year, before accelerating further to an around-trend rate of 3½% in 2018 and 2019’s growth pace should be fairly similar.”