While oil price volatility, China’s financial gyrations, and the further weakening of the US economy create an atmosphere of uncertainty, they do not signal an imminent global economic recession. Global growth is now projected at 2.5 percent in 2016, only slightly below average for the past four years. And while slow growth is quite persistent, there is little reason to hunker down. Businesses that take advantage of current consumer optimism, a favorable borrowing environment, and strong opportunities for innovation by making productivity-enhancing investments now are more likely to show improved competitiveness in the medium term.
How will the 2016 oulook affect economies around the world?