Outlook for emerging economies worsened

Abstract

Near-term growth in the global economy and world trade will be slower than previously forecast. However, low commodity prices and the condition of the monetary economy will support global growth. Economic recovery is expected to gradually gather strength in the euro area, becoming more broadly based. Exchange rate developments to date serve to bolster the outlook for euro area growth and inflation. The Russian economy will contract over the next two years, given the low price of oil. Economic growth in China has slowed, but will continue to be relatively robust.