Each month Oxford Economics’ team of 200 economists updates its baseline forecast for 200 countries using the Global Economic Model, the only fully integrated economic forecasting framework of its kind.
We have raised our world GDP growth forecasts this month, to 2.7% for 2017 and 3.0% in 2018 (from 2.6% and 2.9% previously). Similarly, we have lifted our inflation forecast for this year to 3.1%. Surveys continue to suggest buoyant global activity, driven by manufacturing in several countries. This, in turn, is helping pull world trade from its 2016 lows. However, this partially reflects factors such as stimulus measures in China, which is boosting construction and manufacturing and bolstering trade in the region, and also benefitting major capital goods exporters such as Germany and Japan.