NIESR Cuts Global Growth Forecast to 3.0%

Global economic growth will slow this year to the lowest rate since the financial crisis, according to the National Institute of Economic and Social Research (NIESR).

The think tank cut its 2015 forecast to 3.0% from the 3.2% it predicted in May.

It has cut growth forecasts for the US and many emerging market economies, although its forecast for the eurozone has only been cut slightly.

Its growth forecast for the UK economy was unchanged at 2.5%.

The full-year growth prediction for the UK remained unchanged despite the NIESR cutting its growth estimate for the three months to the end of September from 0.8% to 0.4%.

NIESR identifies the Greek economy as a key risk to global growth. Its forecast is based on the assumption that there will be “large-scale debt relief” for Greece, which is currently far from certain.

It says that the latest Greek crisis has revived doubts about whether the eurozone currency union can succeed without greater integration.

The NIESR also says that the slowdown in China may threaten its forecast, with official figures predicting growth of 7%, while some analysis suggests growth of 3% is more likely.

via BBC

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