Modest firming in global outlook - Wells Fargo

According to analysts from Wells Fargo, the prospects of the global economy have improved since February. 

Key Quotes: 

“Prospects for the global economy have brightened somewhat since our February update and that is reflected in the tenth of a percentage point upward nudge we have made to our estimates for global GDP growth for this year (now 3.1 percent) and next (now 3.3 percent). Our estimate for 2016 global GDP growth remains unchanged at 3.0 percent. Official global GDP figures for 2016 will become available from the IMF in its June World Economic Outlook publication. If our numbers prove accurate, 2016 will mark the slowest year for global growth in the post- 2009 period.”

“In terms of the factors that are driving our slightly improved growth outlook, it is rather broadly based with upward revisions in the outlook for two advanced economies: Japan and Canada, and for three developing economies: India, Brazil and Mexico (in the case of Mexico, we have pared back our forecast decline in GDP).”

“We upgraded our outlook for Japan based on a better Q4-2016 outturn in GDP growth than we had been expecting. In addition, the Tankan survey of large manufacturers in Japan rose to 10.0 in the latest print, up from 6.0 where it had been for three prior quarters and another survey, the Nikkei manufacturing PMI for Japan rose to 53.3 in February, its highest level since 2014. The Canadian economy also performed well in Q4 2016, as the annualized rate of real GDP growth came in at 2.6 percent, versus the expected 2.0 percent.”