Goldman Sachs expects in 2018 further growth of the global economy. This is reported by the CNBC channel.
According to analysts of the world investor, this year economic growth will be accelerated all over the world. So, the largest economy of the eurozone in Germany in the third quarter grew by 0.8%, and in Japan, economic growth lasted seven quarters in a row. The US also did not lag behind and showed 3% of economic growth in the third quarter.
“2017 was the first year of expansion, in which growth made so many surprises,” Goldman analyst Charles Himmelberg said, noting that next year it will be expected great results. Himmelberg and his colleagues expect that next year the world economy will grow by 4% and name a few reasons for this.
In particular, economic growth will cause a strong growth momentum, a weakening of financial conditions, a global monetary policy that remains “highly acceptable by historical standards” and the likelihood of fiscal incentives in the US.
“Starting with 2018, one of the main strategic risks for investors is the adoption of the US tax reform.The second political risk, which experts noted, but which remains active, in our opinion, is US trade policy,” said Himmelberg, that two risks are potentially related.
Himmelberg also said that if the tax reform really will take place, it would put the Trump government in a better position to successfully review the North American Free Trade Agreement (NAFTA – agreement between Canada, Mexico and the USA on the free trade zone, ed.).
Recall, the International Monetary Fund (IMF) expects that the growth of the world economy in 2017 will be 3.6%, in 2018 – 3.7%. Among the risks in the fund, the refusal of strict regulation of the financial sector, worked out by the Ministry of Finance, was introduced, which was introduced in response to the crisis of 2008-2009.
Earlier, the international rating agency Fitch improved the forecast for the growth of the world economy for the next two years. Analysts expect that the economy will show the most significant growth since 2010.