The momentum is ticking higher. The global economy is expected to grow at a robust pace this year and reach levels not seen since 2010, as momentum builds in developed economies and inflation revives, Reuters polls of over 500 economists showed.
Major central banks are expected to move away from stimulus and ultra-easy monetary policy this year, but borrowing costs are still accommodative and could underpin growth.
The latest Reuters polls taken this month, covering more than 45 countries, not only underscored optimism on growth but also showed inflation forecasts were either upgraded or left unchanged in nearly 70 percent of those economies.
The global economy is predicted to grow 3.7 percent this year, the fastest since the 4.3 percent in 2010. The International Monetary Fund’s outlook for 2018 is at 3.9 percent growth.
Among analysts global economic boom is more likely to gain momentum this year and push inflation higher. Expectations are driven by growth in developed economies, particularly the euro zone and the United States.
Surging business and consumer confidence and steady job creation have left economists repeatedly raising growth estimates for the euro zone and its major economies.
The rising euro poses a threat in Europe and could challenge the European Central Bank as it moves to end its money printing by the end of the year. Tomorrow the ECB policy meeting is highly anticipated as we may get hints on when we may get changes, as well as how strong the possibility for a clear QE-end in September is.