EFTA Document EFTA01458961

8 December 2016 World Outlook 2016: Managing with less liquidity Europe: Not a global engine We expect euro area GDP growth to be broadly unchanged at 1.6% in 2016 and to slow in 2017. The global recovery will be less supportive than we previously thought. This year's stimulus from lower oil prices won't be repeated and probably reverses in 2017. Joint monetary and fiscal policy will help compensate in 2016 but not in 2017. Broad financial conditions should start 2016 easy before tighten