Global economic growth will struggle to break out of its current rate unless 2017 sees a meaningful lift in productivity growth, according to J.P. Morgan chief economist Sally Auld.
Speaking at the Financial Standard Chief Economists Forum in Sydney and Melbourne last week, Auld said she expects the global economy to grow at 2.9% in 2017 - a modest uptick from 2016, and on the back of inflation growth over the past couple of quarters.
"When we look at a chart of global growth you can see it's been trapped between a two and three per cent range. We think we're going to get close to the top of that range this year but we feel like there are significant structural headwinds, which mean the chances of breaking above that are pretty limited," Auld said.
"What would make it a whole lot better is a meaningful lift in productivity growth across the world. This is one of the things that has surprised and disappointed economists everywhere for the last few years."
Auld added the firm was bullish on every asset class except sovereign bonds, where returns will be negative in 2017.
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