The world economy is expanding at the quickest pace for seven years, according to the National Institute of Economic and Social Research (NIESR), who have revised growth forecasts upwards across all major economies and regions despite warning there are a number of factors that could dampen the current speed.
NIESR estimated global real GDP growth picked up to 3.7% in 2017 (year-on-year), 0.2% higher than forecast in November, while it is expected to expand 3.9% in 2018 and 3.8% in 2019. However, the firm said there could be some slowdown in the speed of the expansion unless productivity surprised on the upside. NIESR noted key downside risks to growth were the sustainability of asset prices and high debt levels, especially at a time of rising rates in the US. Despite holding rates at their current levels last week, it is expected the Federal Reserve will hike rates three times this yea...
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