While the global economy performed better than expected in the first half of 2016, things turned sour after the U.K. Brexit vote that authorized Britain's withdrawal from the European Union, according to a forecast by Power Systems Research (PSR).

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PDF iconcomplete forecast as it appeared in the October 2016 issue of Diesel Progress magazine's international edition.

The result of the referendum surprised the global financial markets, increasing uncertainty and creating the basis for a slightly negative impact on 2016 and 2017 forecasts.

The main downside of the Brexit vote is an increase in the short-term forecasts, especially for advanced European economies.

Global engine and equipment production is expected to grow by about 0.4% by the end of 2017, a very anemic outlook for next year, writes Emiliano Marzoli, PSR business development manager in Europe. PSR