11.06.2014 - The World Bank lowered its growth forecast
Deceleration of Chinese industry, severe weather conditions in the United States this winter and the crisis in Ukraine led to a revision of prospects for global economic growth in 2014. Thus, the World Bank lowered its growth forecast by 0.4% to 2.8%. It should be noted that in the second half of the year, GDP growth will accelerate in the developed countries, but will slow down in the developing.
In developed countries, the reason for the growth was the cut of government spending, improvement on the labor market and in the construction sector. In emerging countries reasons for the slowdown were the fall in the property market and sanctions against Russia and the tense situation in Ukraine.
The main risk remains the "heavy landing" of the Chinese economy, which will negatively affect commodity exporting countries. On the background of the abovementioned risks, we expect the correction on the world stock markets.