ANNUAL REPORT 2016
Global situation
Recent data from the Eurosystem indicate that global economic activity
evolved positively during the second half of 2016, with a fairly stable ex-
pansion in the advanced economies and a slight improvement in the emer-
ging economies.
The mid-term outlook indicates further growth, although at a slower pace
than seen before the crisis. The outlook is still overshadowed by a variety
of factors, namely the low price of raw materials in exporting countries and
the slow re-balance of the Chinese economy.
Economic activity in the United States recorded a sharp improvement in the
third quarter of 2016. Growth should continue at a moderate pace.
Growth in China stabilised during the third quarter of 2016, supported by
the increase in consumption and by expenditure on infrastructures. It is
predicted that consumption will be the main growth driver, in view of the
gradual reduction in the surplus productive capacity.
In Japan, economic activity grew modestly, due to weak external demand
and stagnation in private consumption. It is expected that the increase in
external demand will enable exports to gradually recover and that budge-
tary stimulus measures will continue to support domestic demand.
In the United Kingdom, the growth in GDP was supported by robust con-
sumption and by the significant contribution from trade, while at the same
time the level of investments was maintained.
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