Global Macroeconomic Prospects

? Brexit triggers policy responses from central banks in both the developed and developing regions ? The weak global economy restrains remittance flows ? China?s GDP growth stabilizes ?

UK vote to leave the EU adds significant uncertainty to the global economy Prolonged weak global growth poses a challenge to sustainable development India further liberalizes its FDI regime

New York, 19?21 October

World gross product projected to expand by just 2.4 per cent in 2016 Forthcoming referendum on EU membership has increased financial market volatility in the United Kingdom Ongoing fiscal adjustment in Africa, the CIS, Latin America and Western Asia continues to constrain prospects

Argentina re-enters international capital markets after 15 years Deflationary trends remain a concern in euro area and Japan GDP growth in China in line with government target, but United States and Republic of Korea fall short of expectations

Policy space in many developing countries constrained by El Ni?o Further improvement in labour market conditions in Europe and the United States Monetary stance eases in the CIS but tightens in Africa

Is the zero lower bound no longer a hard constraint? EU-wide strategy to address refugee crisis remains elusive Drought leads to a spike in food prices in Africa and Latin America

Commodity price rout dampens regional growth prospects China emphasized the need to improve productivity through policies on the supply side of the economy Bank of Japan adopts a negative interest rate

The report projects a modest improvement for the world economy in 2016/17 as a number of cyclical and structural headwinds persist. Global growth is estimated at a mere 2.4 per cent in 2015 and is forecast to grow by 2.9 per cent in 2016 and 3.2 per cent in 2017.