At T.Rowe Price, we believe the global economy looks set to carry much of its recent momentum into 2018, although growth is likely to be slower than what we saw in mid-2017. Trends such as healthier government finances among the more indebted euro-area countries and improving trade in the emerging markets have put the global economy on a more stable footing, which should help it to withstand any withdrawal of loose monetary policy
- We expect the global economy to carry much of its recent momentum into 2018, although growth is likely to be slower than what we saw in mid-2017.
- Companies' investment in production capacity has become the main driver of economic growth.
- A more balanced global economy is well positioned for central banks to start unwinding Quantitative Easing (QE).
- Tighter labour markets in the U.S. and other advanced economies are likely to lift wage growth, but inflation should remain subdued.
Major economies marching to the same drum
All major economies accelerated in unison for the first time in almost a decade. Growth among commodity exporters, Brazil, Mexico and Russia led the way, while Japan and major developed economies in Europe also performed well. Although growth may slow in 2018, we expect the global economy to carry much of its momentum into the new year. Read our 2018 Global Market Outlook.
This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction.
EEA—Issued in the European Economic Area by T. Rowe Price International Ltd, 60 Queen Victoria Street, London EC4N 4TZ which is authorised and regulated by the UK Financial Conduct Authority. For Professional Clients only.
T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. All rights reserved.