Disappointing Global Growth Likely for Fourth Straight Year in 2015 12 November, 2014 World economic growth, which stands at 3.2 percent for 2014, will accelerate modestly to 3.4 percent in 2015, The Conference Board reported today. The Conference Board Global Economic Outlook provides output growth projections for 2015, 2015–2019, and 2020–2025, including 11 major regions and over 50 mature and emerging economies. Overall, annual global growth is projected to average of 3.3 percent from 2015–2019, but could decline to an average of 2.7 percent in the period 2020–2025 on the basis of the current trend. According to the Outlook, long-term growth around 3 percent is sufficient to sustain a moderate increase in global living standards, but is too low to meet all the future challenges posed by rising middle classes in emerging markets and aging populations in mature economies. “Growth in 2014 met our cautious projections, which were at the low end of analysts’ views,” said Bart van Ark, Chief Economist of The Conference Board. “Optimists are poised to be similarly disappointed in 2015—and more so as the long-term growth trend dips below 3 percent. While many in both advanced and emerging economies continue to await a ‘full recovery’ to pre-crisis growth rates, we believe businesses and policymakers would stand better to focus on managing three key macroeconomic certainties that will define the slowdown in the decade ahead: First, a looming labor shortage; second, a drop in productivity growth; and finally, a lack of investment in productive assets.”
Posted on: Sat, 15 Nov 2014 02:11:02 +0000
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