According to the Organization for Economic Cooperation and Development (OECD), global growth in 2016 was the lowest since 2009. The good news? It’s on the rebound, with growth this year expected to reach 3.5%.
The bad news to counteract that good news? In the long-run, nearly all developed countries are converging to 0-1% trend GDP growth.
That last unfortunate fact notwithstanding, a small pickup in global growth suggests that the current trend in equity markets will continue in the near term, as international growth continues to exceed that of domestic.
Previous years’ growth for G20 countries, along with projections for 2017 and 2018, are included in the table below. As you can see, world growth is expected to come in at 3.5% this year, with a subtle acceleration in the works for 2018.
This post was published at FinancialSense on 07/18/2017.