Citi (C) Cuts GDP Outlook Again, Says No Signs Point in Alternate Direction
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Price: $62.47 -0.32%
Rating Summary:
24 Buy, 13 Hold, 2 Sell
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Signs of a recovery are dismal every week with new statistics in jobless claims, new homes being built, and auto production not showing any surprising growth, if any at all. As a result of practically no growth, Citigroup (NYSE: C) has cut its global growth forecasts for 2011 and 2012 now twice within the same month.
Citi believes that the world may hit its second global recession in 2012 following the 2008 recession as they are only forecasting a growth of 2.9 percent globally, lower than their 3 percent prediction for 2011, CNBC reports. The International Monetary Fund and World Bank classifies growth global growth of 2 percent or under as a recession.
The financial firm has downgraded a number of continues on new growth forecasts including China which it now estimates a growth of 8.7 percent in 2012, down from its previous estimate of $9 percent. Other countries include the U.S., Canada, Japan, UK, and multiple countries within Europe.
Citi’s Chief Economist Willem Buiter commented, “We expect more sovereign ratings downgrades among Euro Area countries in the next 3-6 months, including Italy, Spain, Greece, Portugal and Cyprus.”
Analysts at Citi believe that the European Central Banks will likely cut their interest rates while the U.S. will likely keep theirs at low levels.
Citi believes that the world may hit its second global recession in 2012 following the 2008 recession as they are only forecasting a growth of 2.9 percent globally, lower than their 3 percent prediction for 2011, CNBC reports. The International Monetary Fund and World Bank classifies growth global growth of 2 percent or under as a recession.
The financial firm has downgraded a number of continues on new growth forecasts including China which it now estimates a growth of 8.7 percent in 2012, down from its previous estimate of $9 percent. Other countries include the U.S., Canada, Japan, UK, and multiple countries within Europe.
Citi’s Chief Economist Willem Buiter commented, “We expect more sovereign ratings downgrades among Euro Area countries in the next 3-6 months, including Italy, Spain, Greece, Portugal and Cyprus.”
Analysts at Citi believe that the European Central Banks will likely cut their interest rates while the U.S. will likely keep theirs at low levels.
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