Global Economic Growth Disappoints

A weaker than expected recovery in the US economy and recessions in Brazil and Russia held back global growth in the first half of the year - and may hinder growth for the whole of 2015

Andy Brunner 7 August, 2015 | 10:42AM

It has been an underwhelming three months for global economic growth. The rebound in the second quarter of the year from a very poor Q1 was hindered by a weaker than expected recovery in the US economy, a far greater than anticipated slowdown/downturn in much of emerging market Asia outside of China, and even deeper recessions in Brazil and Russia.

Hopes of good global growth in the second half of the year rely on the acceleration in the developed world and China achieving its “official” growth target. Although some uptick in emerging market growth momentum is expected, particularly in Asia, the risk that global growth will not reach the 3.1% forecast is growing.

Indeed, hopes as the quarter began that Q2 growth in developed and emerging markets would accelerate to annualised growth of around 2.7% and 3.6% respectively have been dashed with latest forecasts now below 2% and 3%.

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About Author

Andy Brunner

Andy Brunner  is Head of Investment Strategy, Morningstar UK

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