Page 16 - Economic report 2018

STOCK MARKET INDEX IN THE USA AND EUROZONE
Chart 1.7

Dow Jones Euro Stoxx
Source: ECB and Federal Reserve.

in line with the target of the main central banks, while inflation in emerging and developing
economies was higher and tending to rise (4.8% in 2018 compared with 4.3% in 2017) due to
the depreciation of the respective currencies
Episodes of instability and of some economies.
generalised falls in the stock
markets at the end of 2018. In 2018, instability returned to the stock
markets, especially in the last four months
of the year due to Brexit uncertainty and
growing trade tensions. This explains the generalised falls in the major world stock markets
14
between December 2017 and December 2018. The Spanish stock exchange IBEX-35 saw a
drop of 15% after three consecutive years of gains, a trend that was very similar to that of

IMF ECONOMIC OUTLOOKS FOR THE GLOBAL ECONOMY Table 1.1

FORECASTS
The external environment of the Andorran economy | I. The international economy
2017 2018 2019 2020
Global GDP 3.8 3.6 3.2 3.5
Advanced economies 2.4 2.2 1.9 1.7
USA 2.2 2.9 2.6 1.9
Eurozone 2.4 1.9 1.3 1.6
Germany 2.2 1.4 0.7 1.7
France 2.3 1.7 1.3 1.4
Italy 1.7 0.9 0.1 0.8
Spain 3.0 2.6 2.3 1.9
Japan 1.9 0.8 0.9 0.4
United Kingdom 1.8 1.4 1.3 1.4
Canada 3.0 1.9 1.5 1.9
Emerging and developing countries 4.8 4.5 4.1 4.7
Sub-Saharan Africa 2.9 3.0 3.5 3.7
Emerging European economies 6.1 3.6 1.0 2.3
Commonwealth of Independent States 2.2 2.7 1.9 2.4
Russia 1.6 2.3 1.6 1.7
Developing Asia 6.6 6.4 6.3 6.3
China 6.8 6.6 6.2 6.0
India 7.2 6.8 7.0 7.2
Middle East and North Africa 2.1 1.6 1.0 3.0
Latin America & Caribbean 1.2 1.0 0.6 2.3
World trade (goods and services) 5.5 3.7 2.5 3.7

Source: IMF, July 2019.