The global economic environment headed into 2018 is about “as good as it gets,” says Goldman Sachs Research’s Chief Economist Jan Hatzius. He expects global growth will reach 4% next year, buoyed by synchronized expansion across developed and emerging markets.
The US economy heads into 2018 with strong growth momentum and an unemployment rate already below levels that Federal Reserve officials view as sustainable. Chief Economist Jan Hatzius expects the Fed to lean against this strength with four rate hikes next year, despite a still-firming inflation backdrop.
Goldman Sachs Research’s Huw Pill expects Euro-area growth to show continued momentum, driven by stronger consumer and business sentiment, lower-than-expected unemployment, as well as the strength of the global economy. In the U.K., he sees some moderation in growth, as Brexit continues to affect the long-term outlook.
Chief Asia Pacific Economist Andrew Tilton sees another year of strong growth ahead for the region, bringing with it increased inflationary pressure. He expects a broad shift toward monetary policy tightening in response, with some notable exceptions like continued dovishness from the Bank of Japan.
For the first time since 2010, the world economy is outperforming most predictions — a trend that Goldman Sachs Research economists Jan Hatzius and Jari Stehn see not only continuing but amplifying in 2018.