Recent global developments broadly reflects a gradual pickup in economic activity supported by easing financial conditions, waning fiscal consolidation, lower fuel prices, improving confidence and labour market conditions.
The outlook however show constrained growth in emerging market and developing economies underpinned by structural impediments, rebalancing in China, tighter financial conditions, lower commodity prices and other related geopolitical factors.
According to the IMF World Economic Outlook (WEO) July 2015 update, global growth is projected at 3.3 percent in 2015, and then to 3.8 percent in 2016. In advanced economies, growth is projected at 2.1 percent in 2015 and 2.4 percent in 2016, which indicates a more gradual pickup than was forecast in April 2015.
In contrast, growth is projected to slow from 4.6 percent in 2014 to 4.2 percent in 2015 in emerging and developing economies but is expected to bounce back in 2016 to 4.7 percent. Sub-Saharan Africa (SSA) growth is also expected to weaken from 5.0 percent in 2014 to 4.4 per cent in 2015 mainly due to falling oil prices which has subdued the outlook for Nigeria (the largest economy in SSA).