Global Deal Drivers
Despite the multiple risks to business and household confidence in 2017, the world economy has held up rather well. Several key trends should support growth into 2018 and 2019 and have a positive impact on global deal values.
As we head into 2018, two key regions of the world economy are growing faster than we anticipated in our last edition, improving the outlook for world growth.

In China, fiscal stimulus is boosting infrastructure spending and supporting household incomes. At the same time, the new US administration’s failure to enact protectionist measures thus far is enabling manufacturing firms to regain confidence and resume investment. As such, Oxford Economics revised its forecast for Chinese GDP growth in 2018 from 5.9% earlier this year to 6.2%.

In the Eurozone, easing fears over Brexit and populism have buoyed business and household confidence, which has supported positive economic fundamentals. Oxford Economics raised its forecast for GDP growth in the Eurozone in 2018 from 1.6% to 1.9%.

In aggregate, Oxford Economics forecasts that global GDP growth will accelerate to a cyclical peak of 3% in 2018. Following that peak, however, the potential for cyclical catch-up growth in the Eurozone will have been exhausted, and growth in other major economies such as the US and Japan will also cool.
1 Stronger global demand
GDP Growth Chart
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