In the early aftermath of Brexit, the International Monetary Fund (IMF) published its new World Economic Outlook (WEO), where the organisation revised its previous growth forecast published in April. The global growth outlook for 2016 and 2017 has been reduced and according to the IMF, the deterioration reflects the uncertainty of Brexit’s economic consequences.
In general, growth expectations for global GDP have come down by 0.1 percent for both 2016 and 2017. The drivers for this decline are the advanced economies, mainly the US and Japan. The advanced economies as a whole have been downgraded by 0.1 percent for 2016 and 0.2% for 2017 – and are now levelling at a 1.8% growth rate for both years. This might be the result of a normalised monetary policy in the US and an extraordinary monetary policy in Japan not being effective.
The IMF does not expect the combined growth for the emerging markets and developing economies to be affected. Their projection remains at the same levels as in the April WEO – a growth of 4.1% in 2016 and 4.6% in 2017. As the eerging markets rely on commodities as heir main trade, this will not add to the headache for the currently depressed dry bulk shipping industry…