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World GDP is expected to advance 3.5% in 2017—its best year since 2011—and 3.7% in 2018.
World GDP is expected to advance 3.5% in 2017—its best year since 2011—and 3.7% in 2018.

Synchronized Global Growth Driving Business

US, Europe and China’s economies are strong, which is igniting the rest of the world. The eurozone PMI is also very constructive for world economic growth in the next six months

Synchronized Global Growth Driving Business

Nearly 10 years after the financial crisis brought the global economy to its knees, conditions have finally improved enough and can clearly be said that synchronized global growth is currently underway.
Revenue and earnings growth are up year-over-year, not just in the US but worldwide. Despite President Donald Trump threatening to raise tariffs and tear up trade deals, global trade is accelerating. World manufacturing activity expanded to a 78-month high of 53.5 in October, with faster rates recorded in new orders, exports, employment and input prices, news outlets reported.
Worldwide business optimism, as recorded by October’s IHS Markit Global Business Outlook survey, climbed to its highest level in three years, with profits growth and hiring plans continuing to hit multiyear highs. Optimism among US firms was at its highest since 2014, with sentiment above the global average for the second straight survey period.
Small business owners’ optimism remained at historically high levels in October, according to the latest survey conducted by the National Federation of Independent Business. Its Small Business Optimism Index came in at 103.8, up slightly from September and extending the trend since the November 2016 election.
US, Europe and China’s economies are strong, which is igniting the rest of the world. The eurozone purchasing manager’s index, in particular—rising to 58.5 in October, an 80-month high—is also very constructive for world economic growth in the next six months.

Less Recessions
Speaking on CNBC’s “Trading Nation” recently, Deutsche Bank chief international economist Torsten Slok made the case that global economic health “has never been more robust,” citing the fact that the number of countries in recession has dropped to its lowest level in decades, ValueWalk reported.
“We have never seen a smaller number of countries in recession as we do at the moment,” Slok said. “And if you look ahead to the next few years… we are going to see that fall even lower.”
The Organization for Economic Cooperation and Development backs up this claim in its quarterly economic outlook. According to the Paris-based group, synchronized global growth is finally within sight, with no major economy in contraction mode for the first time since 2008. World GDP is expected to advance 3.5% in 2017—its best year since 2011—and 3.7% in 2018.
Taken together, this should help boost exports and global trade even further as more countries have the capital and demand to make purchases on the world market.

More Stability
The world economy is rather more stable than many imagine, according to James Gorman, chief executive and chairman of Morgan Stanley.
Speaking in an interview with South China Morning Post, Gorman suggested there were a number of topics in the world today about which he felt rather more fuss was being made than they deserve.
This stability even rolls into his bank’s own business, he said. While the lack of global volatility has hurt fixed income trading revenues, Morgan Stanley’s revenues in the US have been boosted by a strong performance by Morgan Stanley’s wealth management division, traditionally one of the more conservative parts of the banking industry.
 “There is relatively little global turmoil. Geopolitically the world is as stable as any decade it has been in any decade in the last 10,” Gorman said.
“Change in the geopolitical space is relatively mild, the political space is full of angst, but nothing around the world is actually changing beyond that feeling of angst, because the economies are performing relatively well underneath it all.”
Gorman noted that while US voters elected Donald Trump, the UK voted to leave the EU and there has been a wave of younger politicians come to power around the world, from Macron in France to Arden in the New Zealand, “no fundamental change has occurred apart from Brexit”.
“Trump has not brought through a wave of new legislation, Prime Minister Justin Trudeau has not reshaped Canada, the only one you could argue has had an effect is Prime Minister Shinzo Abe in Japan.”
In its latest World Economic Outlook report released last month, the International Monetary Fund raised its forecasts for global economic growth to 3.6% this year and 3.7% in 2018, compared with 3.2% in 2016.

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