Global economy: A brighter international outlook - Wells Fargo

According to analysts from Wells Fargo, the outlook of the global economy improved from the forecast of a month ago.

Key Quotes:

“On balance, the outlook for the global economy in 2016 is somewhat brighter than our forecast last month. Owing to an improved outlook for the U.S. economy as well as a run of better-than-expected economic indicators in other foreign economies, we are now forecasting headline global GDP growth of 2.9 percent in the current year compared to just 2.8 percent previously. The 2017 global GDP growth forecast is more or less unchanged at 3.1 percent.”

“In our view, a so-called “Brexit” would be a negative for growth prospects in both the United Kingdom in particular and to a lesser extent for the European Union. In its recent update of its World Economic Outlook, the IMF warned that the global economy could be stuck in a “slow growth trap” and pointed to a potential Brexit as one of the key downside risks for the global economy. By the next publication of our monthly, we will all know the outcome of that vote. In the meantime, every deterioration in business sentiment or in consumer confidence on either side of the English Channel is (correctly or incorrectly) attributed to the associated uncertainty.”