2015 was not a great year for the global economy. Depending upon whom you ask, world output expanded by about two and a half to three percent this year. Next year may not be much better.
Many economists hold out hope that the U.S. economy is finally robust enough not only to sustain its own recovery, but also to lift global trade and global growth. Others worry that the U.S. recovery’s strength will be threatened by a sagging export sector dealing with a stronger U.S. dollar and weak demand from abroad.
A recent Reuters poll of one hundred twenty economists suggests that global economic growth will be a bit better than three percent next year with scant prospect of attaining the four percent threshold. Economic weakness in China, Russia and Brazil will continue to constrain the global economy.
Food prices have already pushed Brazil’s inflation rate above ten percent during an already deep recession and prices could rise further. One bright spot s Europe. Thanks in part to ongoing monetary stimulus from the European Central Bank, the euro zone is finally generated modest growth and unemployment has begun to decline.
