S&P : A Parting Of The Ways In The Global Economy

A Parting Of The Ways In The Global Economy

Standard & Poor’s base-case scenario is for the global economy to continue to expand. We also expect global growth to be a bit stronger in 2015 than 2014, as higher growth in the U.S. (3% after 2.2%) and the eurozone (1.5% after 1.0%) more than offset a slight moderation of growth in China (7.1% after 7.4%) and the U.K. (2.5% after 3.1%). Unfinished business in the global economy remains, generally posing downside risks to our base-case scenario. That unfinished business relates to the residual headwinds, if not semipermanent scars, left by the global financial crisis and the Great Recession, the hybrid economic architecture of the eurozone, Japan’s valiant bid to end a secular deflation and lift its flagging real growth while repairing its sorry fiscal finances, and China’s need to rebalance growth and reform its economic system while digesting a credit and investment overhang from its state-directed growth spurt after the 2008 crisis


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