World Bank Eases Global Growth Outlook for FY13
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U.S. markets are indicated for a lower open Thursday as the World Bank takes a more realistic approach to global growth in 2013.
According to a new report, global GDP is expected to expand by 2.2 percent in 2013, moving to 3.0 percent in 2014, and 3.3 percent in 2015.
Estimates in January had global GDP growth at 2.4 percent.
Emerging market GDP should grow at a clip of 5.1 percent this year, to 5.6 percent and 5.7 percent in 2014 and 2015, respectively. China should see 7.7 percent growth this year, moving to 8.0 percent in 2014, and easing to 7.9 percent the following year.
For high-income countries, fiscal consolidation, high unemployment and still weak consumer and business confidence will keep growth this year to a modest 1.2 percent, firming to 2.0 percent in 2014 and 2.3 percent by 2015, said the World Bank. Economic contraction in the Euro Area is projected to be 0.6 percent for 2013, compared with the previous projection of 0.1 percent. Euro Area growth is expected to be a modest 0.9 percent in 2014 and 1.5 percent in 2015.
An analyst for the World Bank commented, "While there are markers of hope in the financial sector, the slowdown in the real economy is turning out to be unusually protracted...This is reflected in the stubbornly high unemployment in industrialized nations, with unemployment in the Eurozone actually rising, and in the slowing growth in emerging economies, with India’s annual growth having dropped below 6 percent for the first time in 10 years. Also, there is heightened speculation that the US may withdraw QE and widespread concern about its consequences. By going into these topical matters, the World Bank’s latest Global Economic Prospects alerts us to both the hopes and the risks in the global economy, and also gives valuable instructions on policy.
The Dow Jones, S&P 500, and Nasdaq are all about 0.2 percent lower early.
According to a new report, global GDP is expected to expand by 2.2 percent in 2013, moving to 3.0 percent in 2014, and 3.3 percent in 2015.
Estimates in January had global GDP growth at 2.4 percent.
Emerging market GDP should grow at a clip of 5.1 percent this year, to 5.6 percent and 5.7 percent in 2014 and 2015, respectively. China should see 7.7 percent growth this year, moving to 8.0 percent in 2014, and easing to 7.9 percent the following year.
For high-income countries, fiscal consolidation, high unemployment and still weak consumer and business confidence will keep growth this year to a modest 1.2 percent, firming to 2.0 percent in 2014 and 2.3 percent by 2015, said the World Bank. Economic contraction in the Euro Area is projected to be 0.6 percent for 2013, compared with the previous projection of 0.1 percent. Euro Area growth is expected to be a modest 0.9 percent in 2014 and 1.5 percent in 2015.
An analyst for the World Bank commented, "While there are markers of hope in the financial sector, the slowdown in the real economy is turning out to be unusually protracted...This is reflected in the stubbornly high unemployment in industrialized nations, with unemployment in the Eurozone actually rising, and in the slowing growth in emerging economies, with India’s annual growth having dropped below 6 percent for the first time in 10 years. Also, there is heightened speculation that the US may withdraw QE and widespread concern about its consequences. By going into these topical matters, the World Bank’s latest Global Economic Prospects alerts us to both the hopes and the risks in the global economy, and also gives valuable instructions on policy.
The Dow Jones, S&P 500, and Nasdaq are all about 0.2 percent lower early.
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