The global economy is gradually gaining momentum, led by the U.S. and Euro Area economies, but emerging economies are lagging behind, according to the IIF's latest Global Economic Monitor.
Overall, global growth is projected at 3 percent in 2015 and 3.3 percent in 2016, up from 2.6 percent in 2014. The IIF raised its forecast for mature economies by 0.2 percent to 2.3 percent, in part because of the benefits of lower oil prices on consumption. However, the outlook for emerging markets has been marked down by around half a percentage point.
"We are witnessing unusual divergences in the global economy," said Charles Collyns, chief economist at the IIF. "Where U.S. growth and a pick-up in Euro Area growth should push global growth up to its highest rate since 2011, many emerging markets are not yet sharing in the upswing, held back by home-made problems which offset some of the positives."