The 2016 global economy explained in 7 charts

"Global trade growth has been anchored below its historical average since the Great Recession, offering further evidence of tepid world economic recovery. Decreasing global demand, especially due to slowing emerging markets, weighs on the outlook for world trade."

"Although salary growth has remained modest so far, continued labour market improvement should fuel wage inflation eventually. On the other hand, the strong USD will continue to cap headline inflation."

"Saudi Arabia is still pumping at full speed and last summer’s nuclear deal is paving the way for Iran to return to the oil export market. In the US, ongoing efficiency gains have allowed non-conventional oil producers to slash production costs by 20%. In our view, oil prices should remain stuck at low levels – around the USD 50 mark – and any upside is likely to be short-lived."

"Spreads have widened again since mid-2015 and high yield now stands at levels close to those reached in 2000 and 2008 when the US economy went into recession, causing a spike in default rates.

"Sure, we do not expect such a scenario to repeat in 2016 and current valuations offer some value in this respect. However, with the credit cycle already well advanced and moving further ahead next year, the asset class will need to be traded with increasing caution."

"Infrastructure spending in Asia-Pacific is expected to soar to $5.3 trillion per annum by 2025, accounting for nearly 60% of the global total over the next 10 years. China and India, where urbanisation is in full swing, should dominate the picture."

"On the valuation side, Japan is one of the cheapest developed markets, trading at 14.2x the earnings expected for the next fiscal year, a 16% discount to the 10-year average."