As 2017 begins, the global economic environment is characterized by new political realities. In the United States, there is a new president with ideas and goals different from those of his predecessor. The US election has led to higher bond yields and a higher-valued US dollar based on expectations of faster growth and more inflation.
In Europe, growth and inflation have begun to accelerate, yet unemployment remains stubbornly high in much of the continent. Meanwhile, important elections are on the horizon for both Germany and France, setting the stage for the policy environment in the coming year. In Asia, growth is stabilizing, but risks are piling up in the form of higher debts and rising trade tensions. In this edition of Deloitte’s Global Economic Outlook (Global Economic Outlook, Q1 2017), economists across the globe examine the unfolding environment and offer their thoughts on how things might evolve.