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5 Jun 2013
Flash: Trading places amid a soft growth outlook – Merrill Lynch and BoA
FXstreet.com (London) - Alexandra Fletcher, in Global Research at Merrill Lynch and Bank of America said that in early in 2013, strengthening activity in the US and Japan counter weighed weakness in emerging markets and now the largest EM economies seem to be returning the favor, picking up speed while conditions soften in the two large developed economies.
He continued to say that this quarter, global growth seems to be holding up at the 1Q pace of about 3.0% qoq (saar). Looking ahead, he expects 2H global activity to improve due to continued monetary easing, declining inflation, low inventories, resilient EM credit growth and abating US fiscal tightening. All told, he expects the global economy to expand by 3.0% this year before rebounding to 3.8% in 2014.
He continued to say that this quarter, global growth seems to be holding up at the 1Q pace of about 3.0% qoq (saar). Looking ahead, he expects 2H global activity to improve due to continued monetary easing, declining inflation, low inventories, resilient EM credit growth and abating US fiscal tightening. All told, he expects the global economy to expand by 3.0% this year before rebounding to 3.8% in 2014.