Global economic growth to decelerate in 2016, trade outlook sluggish: IATA

IATA, via its 3Q2016 Cargo Chartbook, stated (26-Oct-2016) global economic growth is expected to decelerate in 2016 and expand at the slowest pace since the global financial crisis. World trade remains fragile and is expected to grow slower than GDP. The trade outlook is sluggish, but expansion in export orders and strong consumer confidence may boost air cargo demand. The latest deterioration in yield is likely to be particularly damaging to profitability. The worsening yield environment is not explained by seasonal variability and fuel price developments. A moderate pickup in economic activity is expected in 2017, driven by emerging economies. Increasing capacity, weak trade, lower yields and rising fuel costs remain key risks for the airfreight profitability outlook. [more - original PR]