(Yicai Global) Jan. 17 -- Global economic growth will be better than expected in 2017, accounting firm Deloitte Touche Tohmatsu Ltd. said. Despite protectionist trade rhetoric from the US, the global economy may be in for a "surprise on the upside," possibly with Asia leading the way.
Global economic growth could accelerate in 2017, with leading indicators already pointing to a lift in world trade, Deloitte predicted in a report yesterday. Worldwide growth will trigger an upsurge in trade, which in turn will fuel stronger growth. Helped by a buoyant US economy, China and India are powering ahead as Asia's major markets, and growth is strengthening in most countries in the region.
The US Federal Reserve Bank could raise interest rates four times this year, Xu Sitao, chief economist of Deloitte China, told Yicai Global. The exchange rate of yuan against the US dollar is expected to reach 7.3-7.4 this year. However, yuan volatility could exceed market expectations this year, leading to an even higher figure.
"First, the global economy is finally normalizing after a decade of shocks, and a natural healing process is underpinning a more resilient recovery" Chris Richardson, Deloitte Australia economist, said. "Second, world trade is already lifting and the benefits of this are spilling into Asia. And third, Asia's mega-economies of India and China, are increasingly being powered by consumer booms, acting as a stabilizing force in their economies and for the region."