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The global economy remains in reasonable shape right now despite some pressures on Emerging Market economies, according to analysts at NAB.

Key Quotes

“Advanced economy growth looks like it picked up in Q2 and business survey readings are still at solid levels. In contrast, growth in China and some other EME countries looks to have slowed.”

“Our forecasts for global growth have not fundamentally changed, and while we expect it to remain above its long-run average for now, we think growth of 3.8% for this year will be the peak, with our leading indicator of global growth pointing to a moderation in growth in coming quarters.”

“The major immediate risk to this view comes from rising trade tensions, and the possibility that a tit-for-tat cycle of retaliatory measures escalates out of control.”