Global growth has strengthened as expected in recent months, largely driven by advanced economies, where easier financial market conditions and gradually improving consumer and business confidence have supported growth. While emerging economies have benefited from the stronger external demand, domestic demand has remained weaker than expected in many of them, reflecting in part tighter financial conditions. Many emerging markets have come under renewed market pressure recently. While the trigger is difficult to identify, events are occurring against the backdrop of weakening emerging economy sentiment, including on China, increased risk aversion, and continued UMP tapering. While global growth is projected to continue increasing, the recovery is uneven and fragile and significant downside risks remain.
The outlook remains broadly as projected in the January WEO, assuming that the impact of the recent financial volatility is short lived. In advanced economies, less fiscal consolidation and relaxed financial conditions will support growth this year, while near-term prospects for emerging economies are broadly unchanged. Thus, global growth is projected to increase to about 3.7% percent in 2014 (from 3 percent in 2013) and 4 percent in 2015, similar to the January 2014 WEO Update.
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The outlook remains broadly as projected in the January WEO, assuming that the impact of the recent financial volatility is short lived. In advanced economies, less fiscal consolidation and relaxed financial conditions will support growth this year, while near-term prospects for emerging economies are broadly unchanged. Thus, global growth is projected to increase to about 3.7% percent in 2014 (from 3 percent in 2013) and 4 percent in 2015, similar to the January 2014 WEO Update.
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