Global economy: Is it starting to stir again? - Wells Fargo

Analysts from Wells Fargo, point out that economic data suggest that the global economic growth may be starting to recover. 

Key Quotes: 

“Recent economic data suggest that global economic growth may be starting to awaken from its year-long slumber. Although real GDP growth in the United States in Q4 2016 was more or less in line with consensus forecasts, growth rates in China, the Eurozone and the United Kingdom all were stronger than expected, if only modestly.”

“We give a good deal of credit to policymakers, especially to central banks in many major economies, for the recent upshift in global growth. In addition, the collapse in commodity prices, which eroded income in many commodity-producing economies, has largely run its course. Consequently, growth rates in these economies are starting to stabilize.”

“The apparent upturn in global growth is probably sustainable, but a return to the “good old days” of 2003-2007, when global GDP grew at an average rate of roughly 5 percent per annum, does not appear to be likely anytime soon. Both Brazil and Russia are slowly emerging from deep recessions, and China will not likely return to double-digit rates of economic growth anytime soon, at least not on a sustained basis.”

“Global inflation dynamics appear to be shifting, with downward pressure on overall inflation rates starting to moderate. Although central banks in most major foreign economies may not be tightening policy anytime soon, further easing steps by these central banks do not appear to be likely either, at least not in the foreseeable future.”