Global Growth Slows to Lowest Rate Since Recession

The global economy grew just 3% in 2016 – the slowest annual growth rate since the 2009 recession, according to the National Institute of Economic and Social Research

Karen Kwok 1 February, 2017 | 12:37PM

The global economy grew just 3% in 2016 – the slowest annual growth rate since the 2009 recession, according to the National Institute of Economic and Social Research.

The Institute said global growth was held back by extraordinarily low interest rates, high levels of government debt in China, and the recent anti-fraud policy in India which saw Prime Minister Narendra Modi cancel all 500-rupee and 1,000-rupee notes, representative of 85% of the cash in circulation.

The Institute estimates the world economy will grow to 3.1% in 2017 and 3.5% in 2018. There will be a gradual strengthening of global economic growth, but in the medium term, GDP expansion will still be below the rate experienced before the financial crisis in 2007, said Iana Liasze, research fellow at the Institute.

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Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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