Slow global growth to continue - Wells Fargo

The outlook for global growth from analysts from Wells Fargo is for continued weakness and noted that slow growth in the developing world does not help growth prospects in the develop world.

Key Quotes:

“Much of the volatility in financial markets since the beginning of the year has been linked to concerns about the global economic outlook. We expect the global economy grew roughly 3 percent in 2015, marking the fourth consecutive year in which global GDP growth has been below its long-run average of 3.5 percent per annum.

“In our view, the outlook for global growth in 2016 is for continued weakness.”

“Slow economic growth in the developing world does not help growth prospects in the developed world, but it is not likely, by itself, to lead to recession in advanced economies. The expansions that have been in place in most advanced economies should remain in place, although the pace of GDP growth in these major economies likely will be lackluster.”

“In an environment of slow growth in nominal GDP, sovereign bond yields in most economies are not likely to rise significantly anytime soon.”