Global economy growth to accelerate in 2014, 2015
Xinhua, March 14, 2014 Adjust font size:
The global growth will accelerate in 2014 and 2015, as major advanced economies' (MAE) recovery is strengthening, though growth rate in emerging markets (EMs) will remain broadly flat, said Fitch Ratings in its Global Economic Outlook report Thursday.
The London-based international credit rating company forecasts a 2.9 and 3.2 percent growth in these two years, up from 2.4 percent in 2013, unchanged from its previous projection in last December. But Fitch uplifts China's growth forecast from previous 7.0 percent to 7.3 percent for 2014.
"China has tightened domestic monetary conditions, allowed some two-way exchange rate volatility and injected greater credit discipline by allowing corporate debt defaults. Fitch believes these measures are intended to address perceived risks to financial stability while engineering a continued soft landing for the economy," said Fitch.
In the developed world, Fitch expects the United States real GDP growth will pick up from 1.9 percent in 2013 to 2.8 percent in 2014 and 3.1 percent in 2015, the strongest among the MAEs. Unemployment rate of the country will be 6.4 percent in 2014 and 6.0 percent in 2015 respectively, while inflation will remain subdued, said Fitch.
The credit rating company sees a gradual restoration in the euro zone, with GDP growth of 1.1 percent and 1.4 percent in the next two years, after a 0.4 percent contraction in 2013. The easing of fiscal consolidation, normalizing of financial conditions, as well as improvement in economic sentiment will underpin the growth, said Fitch.
Britain will lead a better balanced growth, of which Fitch revised up the country's GDP expansion rate to 2.5 percent in the next two years. While Japan will pick up its growth rate in 1.7 percent this year before moderating to 1.2 percent in 2015.
In contrast, Fitch said that the tighter funding conditions, lower non-energy commodity prices, structural weaknesses and heightened political risks in EMs.
EMs' growth rate will subdue at 4.5 percent in 2014 and 4.8 percent in 2015, well below the 6.1 percent average in period from 2010 to 2012, forecasted Fitch.
