August 3, 2016
Global growth outlook, which was trending slightly upward, has been revised marginally downward following the U.K.’s referendum vote to leave the European Union. The Federal Reserve Bank of Dallas pointed out that the G-40 global economy aggregate index (which excludes the U.S.) is forecasting marginally slower growth than previously expected.
In addition to declining U.K. growth, Brexit triggered a wave of banking share sell offs throughout Europe. Tighter credit conditions, created by banking complications, could further slow growth recovery.
Brexit has not been the only economic concern, however. Japan’s deflation, paired with concerns over a drop in output growth in China, are also increasing risks when it comes to the global economic outlook.
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