05

The FRR in its economic environment

Annual GDP growth: world, developed countries and emerging countries between 1990 and 2016

19 90

19 91

19 92

19 93

19 94

19 95

19 96

19 97

19 98

19 99

20 00

20 01

20 02

20 03

20 04

20 05

20 06

20 07

20 08

20 09

20 10

20 11

20 12

20 13

20 14

20 15

20 16

Emerging economies Developed economies World

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

A STEADIER ECONOMIC SITUATION Despite a tumultuous start to the year notable for concerns about the Chinese economy (fears of a hard landing and devaluation of the yuan) and the situation for commodity-producing countries, global economic growth is ultimately thought to have been +3.1% in 2016, down very slightly (-0.1%) on 2015 by the International Monetary Fund s estimates.

Developed countries grew by 1.6% as opposed to 2.1% in 2015. The rate in emerging countries was stable at +4.1%. This is good news as growth had been slowing in the emerging world since 2010. According to the IMF, it should rebound in 2017 to reach around 4.5%.

Source: Datastream, IMF.

In developed countries, the slower pace of growth was largely attributable to the United States, which experienced quite a considerable slowdown in the first half of the year. The world s biggest economy suffered from the past appreciation of the dollar, which had gained 17% between mid 2014 and the end of

2015, softer demand from emerging countries,

and the energy industry s adjustment to the

sharp drop in oil prices.

However, the US economy found a new lease of

life in the second half of the year, largely on

account of robust consumer spending and a