India is forecast to grow by 7,2 per cent in 2017, although this forecast was trimmed somewhat due to the government’s decision to demonetise almost 90 per cent of the currency in circulation. This move induced a temporary negative consumption shock owing to cash shortages and payment disruptions. Both Brazil and Russia are expected to return to positive growth in 2017.
So while the global economy is expected to turn the corner this year, there are a number of risks that warrant attention.