Global economic growth is strengthening, says new report

By The IJ Staff | October 05 2017 11:30AM

Photo: Freepik

Global growth is strengthening as policy stimulus in some advanced economies is unwound, says Scotiabank’s Global Outlook released Oct.5.

"For the first time since the global financial crisis, all 45 industrialized OECD countries are set to expand," said Jean-François Perrault, Senior Vice President and Chief Economist at Scotiabank. "Given the breadth of growth geographically and its increasing diversity within countries, the foundation remains for solid global performance through at least 2018, though geopolitical risks continue to dominate."

Firms join households in contributing to the recovery

The report says there are now “tangible signs that firms have joined households in contributing to the recovery in most countries, and capital spending in the more advanced OECD countries is expanding at a pace not seen in over three years.”

The Scotiabank Outlook forecasts growth in Canada to reach 3.1 per cent during 2017. This is expected to slow to 2.0 per cent in 2018 and 1.5 per cent in 2019 “as tailwinds from busy Canadian consumers begin to wane.”

The U.S. economy is forecast to grow 2.2 per cent year over year in 2017, before plateauing in 2018 at 2.3 per cent, then decelerating to 1.7 per cent year over year in 2019. China is expected to continue as one of the global engines of growth, yet real GDP gains will likely decelerate to 6 per cent year over year by the end of 2019, says the Outlook.

To learn more, read the report online.