Favourable developments and new concerns in the global economy

Global economic growth will strengthen from its 2016 level and continue at an annual pace of over 3% in the years 2017–19. Improvements in confidence in the United States and elsewhere will boost economic growth in the short term. Upside risks to US economic growth in 2018–19 could arise if the expected growth-enhancing measures of the new administration are fully implemented. At the same time, foreseeable increases in protectionism could considerably weaken global economic and trade growth.