Ecnomic Outlook Shifting
The western hemisphere will affect the world outlook as a tale of two adjustments.
Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade, according to Chapter 1 of this World Economic Outlook.
The pickup in global growth anticipated in the April World Economic Outlookremains on track, with global output projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018.
GDP growth is projected to edge up to 1.6% by 2018, as tax cuts and faster job growth support stronger private consumption.
The growth outlook for Nauru depends on the phosphate industry and activities supporting the Regional Processing Centre. Nauru economy forecast to grow 3% in FY2016 and 15% in FY2017.
Revenues of this tiny island traditionally have come from exports of phosphates. Few other resources exist, with most necessities being imported, mainly from Australia, its former occupier and later major source of support.
North Korea, one of the world’s most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment, shortages of spare parts, and poor maintenance.
North Korea’s economy is a centrally planned system, i.e. the role ofmarket allocation schemes is limited.
Syria’s economy continues to deteriorate amid the ongoing conflict that began in 2011, declining by 62% from 2010 to 2014. The government has struggled to address the effects of international sanctions, widespread infrastructure damage, diminished domestic consumption and production, reduced subsidies, and high inflation