Trade and Development Report 2016
The world economy in 2016 is in a fragile state, with growth likely to dip below the 2.5 per cent registered in 2014 and 2015. The mediocre performance of developed countries since the 2008–2009 economic and financial crisis is set to endure, with the added threat that the loss of momentum in developing countries over the past few years will be greater than was previously anticipated. Without a change of course in the former, the external environment facing the latter looks set to worsen, with potentially damaging consequences for both their prosperity and stability in the short to medium term. More widespread contagion from unforeseen shocks cannot be ruled out, knocking global growth back more sharply. The decision by voters in the United Kingdom to leave the European Union (EU) is one such shock.