The global economy is set to grow by almost 4% in 2018 in purchasing power parity (PPP) terms, adding an extra $5 trillion to global output at current values, according to new projections in PwC’s latest Global Economy Watch.
Ireland is expected to be the fastest-growing Eurozone economy in 2018, well ahead of France and Germany. Ireland’s economy is also forecast to grow around two-and-a-half times faster than the UK.
The main engines of the global economy - the US, emerging Asia and the Eurozone - are expected to contribute almost 70% of this global economic growth in 2018, well ahead of their post-2000 annual average of around 60%.
Growth in the Eurozone is predicted to be above 2% in 2018, as PwC expects the peripheral economies (Greece, Spain, Portugal and Ireland) to outpace the core economies (Germany, France, Italy and Netherlands) for the fifth consecutive year.
Ireland is expected to be the fastest growing of the core and peripheral economies with PwC forecasting that the Republic’s economy will grow by around 3.5% in 2018.
Of the larger Eurozone economies, the Netherlands is expected to lead the way with economic growth at 2.5%. By contrast, uncertainty relating to Brexit is expected to drag on UK growth, which is predicted to be 1.4% in 2018.
Barret Kupelian, senior economist at PwC, said:
Other PwC Global Economy Watch projections for 2018 include:
Notes for editors.
The full report is available to download below.