Research Shows Global Economy To Grow 3.2%, Low Recession Risk

(January 4, 2018) — The global economy will expand 3.2% in 2018, matching the rate of growth achieved in 2017 and marking the first time since 2011 that global growth topped 3%, according to an annual fore-
cast released in December by business information provider IHS Markit. “The global economy finally broke through the doldrums in 2017 and the stage is set for continued solid growth in 2018,” said Nariman Behravesh, chief economist at IHS Markit. “We expect continuing expansion in the U.S. and emerging markets to offset plateauing in the Eurozone and Japan. While economic risks remain, most are low-level threats to the overall picture for 2018.”

Strong economic momentum in the U.S. will carry over into 2018 and IHS Markit forecasts the world’s largest economy will grow 2.6% this year, up from 2.3% in 2017 and well above the 1.5% growth in 2016. Economic fundamentals and increasing employment in the U.S. will provide strong tailwinds for consumer spending, capital expenditures, and housing.

(SOURCE: The Weekly Propane Newsletter, January 8, 2018)