External Economic Developments Looking back, it is estimated that global output growth was 3.1 percent in 2016, compared to 3.2 percent in 2015, and weaker than the projection of 3.4 percent early in the year.
The lower growth rate resulted from subdued economic activity in both advanced and emerging market economies, while low commodity prices continued to weigh down on economic performance in commodity exporting countries. International oil prices, however, recovered during 2016, partly in response to the agreement by major producers to reduce production; therefore, potentially generating upward pressure on inflation.