IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 Global situation Recent EUROSYSTEM and OECD forecasts point towards a sustainable and general expansion of the world economy, which is estimated to have grown 3.6% in 2017. A slightly higher rate in 2018, followed by a similar rate in 2019 is expected, in a broadly favourable economic scenario, due to the stability of the financial conditions and of the labour market of the main world economic blocs, as well as the trend of a gradual rise in the prices of commodities, namely oil, which has contributed towards a moderate increase in inflation. A vigorous expansion of advanced economies and dynamic growth of emerging economies is expected, in line with strong growth in India and China and the gradual strengthening of business activity in commodity- -exporting countries, namely Brazil and Russia. The US economy expanded 2.2% in 2017, with expected growth rates of 2.5% and 2.1% in 2018 and 2019 respectively, driven by the recently appro- ved tax scheme, in a near-full employment scenario. GDP growth in the Eurozone came to approximately 2.4% in 2017, the highest level of the last decade, and is expected to remain robust, despi- te a gradual decrease over the next few years, driven by internal demand and fixed investment expenditure, with a fall in the unemployment rate to 9.1%, the lowest level since 2008. In 2017, the Chinese economy grew 6.8%, boosted by the performance of the services areas and of some strategic industries, with a slight slow- down expected over the next few years, due to a foreseeable reduction of exports. 25