Global Q1 GDP in expansion? - NBF

Analysts at NBF Economics and Strategy explained that the global economy continued to expand in the first quarter, albeit at a more moderate pace.

Key Quotes:

"The persistence of low inflation should limit the extent of monetary policy tightening by major central banks this year, while fiscal policy is also expected to remain stimulative in both advanced and emerging economies."

"As such, we expect world GDP to match last year’s growth print of 3.8%, although that assumes world governments successfully manage risks posed by trade protectionism and record debt levels."

"A good start to the year puts the U.S. economy firmly on track to grow about 2.8% in 2018, the best performance in years. Solid fundamentals suggests an acceleration of growth after Q1. A strong labour market, federal personal tax cuts, low interest rates, and easy access to credit are all positive for consumers."

"Solid profits, made even healthier by corporate tax cuts, will continue to lift business investment. But protectionist policies threaten to disrupt an otherwise promising economic outlook".