Global economic outlook gets a downgrade
By PRW Staff
Posted 14 August 2012
A leading economic think-tank has lowered its forecasts for global growth, pointing to continued problems in the eurozone, mounting concerns over the future of the Middle East and the stop-start progress in the US economy.
The London-based Centre for Economics and Business Research (CEBR) expects economic performance to be very weak next year and “sluggish” for the next four years.
The organisation revised its global annual growth forecasts for 2014 to 2016 down to 3.2% from 3.5%.
The CEBR forecasts the UK to grow by 0.7% next year, while the eurozone is likely to dip 0.1%.
The US is expected to grow by 1.7% in 2013, the CEBR said, while China will see growth slow to 7.6% from the double-digit figures it has seen recently.
Emerging economies are also in line to slow down, according to the CEBR. It predicts India will manage 6% growth a year for the next two years, while Brazil will see a 2.1% increase in 2012 and 3.1% next year.
Meanwhile Japan’s economy grew at an annualised rate of 1.4% in the last quarter, less than expected. The country’s exports were hit by the weakened eurozone.
However observers were encouraged by what are seen as “upward trends” led by rising domestic demand.
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