Global GDP growth should remain strong over the rest of this year, due to healthy growth in household consumption and business investment. Inflation is likely to trend towards 2% in most advanced economies, but will do so at different rates. So while the ECB probably won’t raise interest rates until September 2019, the Fed is likely to hike rates a further four times by the middle of next year. We expect this to cause the US economy to slow during 2019-20. With China’s economy also losing momentum, global growth should ease over the next couple of years, regardless of how far the trade war escalates.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services