Annual Report 2016
Previous Page  14 / 80 Next Page
Information
Show Menu
Previous Page 14 / 80 Next Page
Page Background

8

Annual Report 2016

Table 1

World economic growth rates, 2015–2016

(% change over previous period)

Grouping/country

2015

2016

OECD

2.3

1.7

Other Europe

3.1

3.7

Developing countries

3.2

3.2

Africa

3.1

2.3

Latin America and Caribbean

–0.6

–1.4

Asia and Oceania

4.5

4.8

Asia Pacific

3.7

4.0

OPEC

1.3

1.4

China

6.9

6.7

FSU

–2.5

0.2

Total world

3.1

3.0

Sources

Secretariat estimates; OECD, Main Economic Indicators; OECD, Economic Outlook; International Monetary Fund (IMF),

World Economic Outlook; IMF, International Financial Statistics.

both consumer spending ability and sentiment. While

growth stood at only 1.6% in 2016, private house-

hold consumption rose by 2.7%, albeit slightly below

the 2015 consumption level of 3.2%. Still, private

household consumption was the foremost supporter

of the underlying growth pattern. This was certainly

helped by ongoing labour market improvements, but

also by lower energy prices, which were another im-

portant factor. However, positive developments in

consumption in 2016 were counterbalanced by nega-

tive developments in the energy market. Investments

were considerably down, with gross private domestic

investments declining by 1.6%, significantly impact-

ed by CAPEX cuts in the energy sector. Also, the rise in

the US dollar weighed on growth, as exports were hit

by a weakening competitive situation and managed

growth of only 0.4%.

Japan’s economy continued to grow, albeit at a

low level of only 1.0%. This was again supported by

monetary and fiscal stimulus. Government spending

rose by 1.5%, compared with private consumption of

only 0.4%. In addition to this, the low yen was support-

ive of exports, particularly at the end of the year. While

exports expanded by 1.2% on a yearly average, 4Q16

export growth stood at 11.0% quarter-on-quarter sea-

sonally adjusted annualised rate, its largest quarterly

rise in the past year. While inflation remained low,

appreciating oil prices in combination with rising sala-

ries at least kept inflation from significantly declining,

holding to a yearly average of –0.1%, with the largest