Global Economy: Moderate recovery from 2015 slump – Danske Bank

Research Team at Danske Bank, suggests that in 2015 the global economy moved into a slump driven primarily by two factors: 1) a big decline in oil prices that gave a blow to US investment growth, 2) a hard landing in Chinese construction sector due to a big oversupply of houses.

Key Quotes

“The slowdown spread to Emerging Markets outside China – especially commodity exporters.

Both of the above drags have faded in 2016. Oil prices have recovered and Chinese construction is seeing a lift on the back of strong home sales and lower inventories.

New uncertainty regarding Brexit and US election have come to the surface but overall the drags are so far smaller than last year and we predict a moderate recovery in 2016 and into 2017. The biggest risk is a Brexit.”