Economic Market Update
Challenges for the Economy and Material Handling in 2017, With Picture Brightening in 2018
Slow global growth, Brexit fallout, oil and gas credit risks and U.S. election fallout continue to present risks for the year ahead.
The International Monetary Fund (IMF) reported global growth at 3.1 percent for 2015, with expected growth of 3.1 percent for 2016. On the upside, in October 2016, the IMF presented its forecast for 2017 global growth at 3.4 percent. However, IMF forecasts are usually too high, and I believe IMF growth expectations for 2017 are likely to be revised lower.
Since slow growth remains a risk, we expect most foreign central banks will remain accommodative in 2017. The Fed, however, is in a tough position, since the Federal Open Market Committee (FOMC) has been talking about raising the Fed funds rate for some time.
By Jason Schenker, CFP®, ERP®, CVA®, Prestige Economics, LLC