We expect growth in the US to pick up next year as a result of Donald Trump’s planned fiscal stimulus, but in several other advanced economies it is likely to slow. Although headline inflation is set to rise almost everywhere, core inflation should remain below target in most developed countries apart from the US. Against this backdrop, monetary policy is likely to diverge more than the markets currently anticipate, putting further upward pressure on the US dollar against the euro and yen. Meanwhile, commodity-producing emerging economies such as Brazil and Russia should come out of recession, and the recent policy-induced rebound in China is likely to run out of steam. This Update brings together some of the key economic calls for 2017 from our regional, country and sectoral services. A selection of supporting publications is listed on the second page. Clients are also able to access detailed analysis and specific economic and market forecasts on our website.
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