According to PwC’s Global Economy Watch:
- Global economic growth in 2018 on track to be fastest since 2011
- PwC Economic analysis predicts 2018 to be the most energy hungry on record
- G7 unemployment rate hitting a 40 year low
- Eight of the ten fastest growing countries in 2018 could be in Africa
(PwC)–The global economy is set to grow by almost 4% in 2018 in purchasing power parity (PPP) terms, adding an extra $5 trillion to global output at current values, according to new projections in PwC’s Global Economy Watch.
The main engines of the global economy – the US, emerging Asia and the Eurozone – are expected to contribute almost 70% of economic growth in 2018 compared to their post-2000 average of around 60%.
Growth in the Eurozone is predicted to be above 2% in 2018, as PwC expects the peripheral economies to outpace the core for the fifth consecutive year. Of the larger Eurozone economies, the Netherlands is expected to lead the way with economic growth at around 2.5%. By contrast, uncertainty relating to Brexit is expected to drag on UK growth, which is predicted to be 1.4% in 2018.
Barret Kupelian, senior economist at PwC, comments:
“In 2018, we expect global economic activity to grow at its fastest rate since at least 2011, with the three main engines of the global economy—the US, Eurozone and Asia—growing in tandem. However, there are some downside risks businesses should monitoring including the progress of the Brexit negotiations, key elections in large economies and protectionist tendencies in some nice sectors of the economy.”
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China, the world’s largest economy in PPP terms, could grow by 6-7% in 2018, slower than previously, but in line with expectation. Amongst the 17 economies that will grow faster than China are India, Ghana, Ethiopia and the Philippines, pointing to broader based growth in Africa and Asian economies. Eight of the ten fastest growing countries in 2018 could be in Africa according to PwC’s analysis.
With the fastest level of growth for several years, 2018 is predicted by PwC to be the most energy hungry on record too. Almost 600 quadrillion British Thermal Units of energy could be consumed by the global economy in 2018, the highest level on record and double that of 1980. India and China alone are expected to consume 30% of global energy.
Read the complete story of PwC’s Global Economy Watch at PwC
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See also:
- Ethiopia Opens $3.61 Billion Gap on Kenya’s Economy
- Ethiopia’s Economy Shows Strong Resilience in 2016/17: IMF Staff Team
- Mauritius and Ethiopia Are the Fastest Growing Wealth Markets in Africa, Report
- Africa’s Economic Giants Face Increasing Competition from Upcoming Kenya and Ethiopia
- World Bank’s Global Outlook Considers Ethiopia as the World’s Second Fastest-growing Economy