Global economic growth will be lackluster during the next two years, weighed down by the slowdown in China and other emerging markets, Moody’s Investors Service said in a report on Tuesday. That muted growth will hinder governments in reducing their debts and prevent central banks from raising interest rates significantly, said the report’s author, Marie Diron, in a news release. She also warned that authorities “lack the large fiscal and conventional monetary policy buffers to protect their economies from potential shocks.” Moody’s predicts G-20 GDP growth will average 2.8% in 2015-17, only 0.3 percentage point higher than in 2012-14 and below the 3.8% average recorded in the five years before the financial crisis, the release added.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News