Global economy: average growth, the best to expect – Wells Fargo

By FXStreet FXStreet (Córdoba) – Analysts from Wells Fargo wrote in its Monthly Economic Outlook that “average” rates of growth may be the best the global economy can expect for the foreseeable future.

Key Quotes:

“Recently released data suggest that global economic growth continues to grind forward at a modest rate and we forecast a continued modest pace of global expansion.”

“If our forecast of 1.7 percent real GDP growth (Eurozone) in the third quarter is realized, it would mark the strongest year-over-year rate of growth in more than four years. That said, most observers would not consider 1.7 percent growth to be especially “robust.” Moreover, the level of real GDP in the Eurozone would still remain below its Q1 2008 peak.”

“Real GDP growth in China has slowed over the past two years, and we look for further deceleration. That said, we do not expect the Chinese economy to completely collapse because authorities have the policy ability to respond to any sharp downturn that could develop in the economy.”

“We now see (in the US) that the bulk of the inventory correction is behind us, but still look for real GDP to expand at a 2.6 percent pace in the fourth quarter and look …read more

Source:: FX Street