Global Picture: Steady sub-trend growth and sub-target inflation - NAB

Research Team at NAB, suggests that despite the ups and downs of global financial markets in the first five months of the year, the underlying picture remains one of steady sub-trend growth and sub-target inflation.

Key Quotes

“Neither the business surveys nor the monthly partial data on industrial output and exports show evidence of an imminent acceleration in global growth but the rise in commodity markets off their recent lows and the wealth effects of higher share prices could support activity later this year.

Despite the many risks, we still think global growth will muddle through 2016 at around the 3% rate seen last year but there are plenty of economic vulnerabilities that could spark further rounds of market volatility.”