The world economy is doing well, with the US and China leading the way in economic growth. Despite high oil prices, global economic conditions are good, supporting continued expansion. Emerging economies are benefiting from globalization and higher commodity prices. The forecast predicts global output to increase by 3.6% this year and 3.4% next year. The US and Japan are expected to grow faster than the Euro Area. Inflation is expected to moderately accelerate due to labor market and energy price pressures.