International Monetary Fund downgraded the outlook for global economic growth by 0,3% to 3.4% due to the decline of U.S. GDP in the first quarter and the growth slowdown in China and Russia. Growth forecasts have also been downgraded for Italy, France, Brazil and Mexico. At the same time, according to analysts of the IMF Germany, Japan and Spain can grow more than previously anticipated.
Among the risks to the global economy remain the housing market in China, where there is a severe recession, as well as geopolitical risks associated with the annexation of the Crimea by Russia and possible strengthening of sanctions against Russia in the near future, which also will be negatively displayed on the economy of the European Union. Due to the lack of new drivers for growth and overvaluation of assets in the market, we expect a significant correction on global stock markets.