Chapter 1: Macroeconomic Conditions and Outlook

The global economy has moved from recovery mode into a strong upturn. Supported by the robust development of private consumption and a marked increase in investment, in particular advanced economies made a major contribution to the current wave of global economic expansion. Output gaps in the euro area and the United States are expected to close soon or have already done so. Strong contributions are also coming from East and Southeast Asia. The Chinese economy and the Japanese economy expanded strongly, both fuelled by economic stimuli. In Latin America, the recovery was dampened by the sluggish economic recovery in Brazil and the aftermath of the devastating earthquakes in Mexico. In India, the economy is regaining its footing after a banknote demonetisation and a VAT system reform.