Forecast for world GDP growth in 2017 has been revised up to 3.6 per cent, which would be the fastest growth in six years. Growth projections for 2018 and the medium term are unchanged, at 3.6 and 3.4 per cent, respectively. Inflation forecast has nevertheless generally been revised down slightly.
In the Euro Area, stronger economic performance, together with reduced political uncertainty, provides an opportunity for action to complete the monetary union and reduce economic imbalances.
To avoid jeopardising the recovery, central banks in the advanced economies will have to manage policy normalisation with particular caution.