Global growth accelerated in 2017, according to a report from the Federal Reserve of Dallas, supported by strengthening labor markets and external demand. Although inflation concerns among advanced countries abated, risks remain and are mostly tilted to the downside. The world is expected to reach 3.1% annual growth in 2018, slipping to 3.0% in 2019. Those forecasts follow on the heels of solid 3.4% year-over-year growth in third quarter 2017.
Concerns are centered on trade policy changes and entrenched protectionist attitudes, uncertainty about shifting U.S. policy and its global spillovers, and the consequences of tighter global financial conditions and asset volatility. High levels of public and private indebtedness, political and geo-political risks, and uncertainty about the strength of the cyclical recovery also weigh on the outlook.