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Summary
Summary
- 2015 was a tough year for the global economy amid geopolitical risks and migration crisis as well as slowdown in emerging markets, particularly in China. However, there was also a bright spot, with the US economy strengthening and the Fed feeling confident that the world’s number one economy could withstand the first interest rate hike in almost a decade.
- In the final month of the year, professors’ confidence waned, as no region saw an uptick in the economic sentiment index in December.
- Europe’s short-term sentiment index remained flat, whereas the three-year mood indicator fell, despite the ECB’s recent move. The central bank decided to embark on more stimulus measures to fight stubbornly low inflation. The central bank lowered the interest rate of the deposit facility by 10 basis points to –0.30%. In addition to that, the ECB extended its asset-purchase programme until the end of March 2017, or beyond, if necessity arises.
- The same picture was seen in professors’ assessment of the North American economic potential, despite the Fed optimism about the world’s number one economy and historic decision to hike interest rates.
- Academia experts remained concerned about the Asian-Pacific region, with China’s economic slowdown being reportedly the source of economists’ worries.