DB Cuts Global Growth Outlook to 2.3%

Deutsche Bank cut its global growth forecast on Friday and warned a summer tempest could await financial markets.
The German bank downgraded its estimate for U.S. growth this year by nearly a percentage point, down to 2.3 percent from 3.1 percent.

It now sees world growth at 3.3 percent in 2014, rather than the 3.5 percent predicted in March.

Deutsche said the “remarkable calm” that had settled over markets across the world in recent months would not last.

The widely followed VIX index, which tracks near-term volatility on the U.S. benchmark S&P 500, has declined 15 percent since the start of the year.

“The calm cannot last indefinitely, and the question at hand is whether the clouds on the horizon portend merely a late-summer squall or a potentially far more damaging tempest,” Deutsche economists wrote in a report published on Friday.
“Our baseline forecast assumes the former—a manageable storm.”

Deutsche attributed its cut to U.S. outlook to “weather-driven disappointment” in the first three months of the year.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.