Overview 2015: Not such a Grimm tale but no fabled happy ending

2015 global growth should show a marginal improvement to 2.8%, before finally expanding by 3.1% in 2016. While the world started 2014 with much optimism it was ultimately a year of persistent economic disappointment and frustration across the globe.

This year we anticipate that policy action from both the European and Japanese central banks will boost growth, inflation and inflation expectations but all of these are part of a multi-year recovery scenario. We believe cautious optimism remains vital, as in 2014, only Spain, the UK, Ireland and India truly outperformed our broadly below consensus expectations and even then these outperformances were modest.

In 2015 advanced economies can be expected to grow at 2.1%, the fastest pace since 2010.