Citi researchers said the world may be seeing a slowing or stalling of globalisation involving shrinking cross-border bank exposure, sluggish growth in world trade and low levels of foreign direct investment. "Some of these ‘de-globalisation’ trends mainly reflect the modest pace of advanced economy growth - notably Europe - rather than a reversal of globalisation itself," the report said. "Indeed, with big inflows of foreign workers, labour markets in many advanced economies have become more globalised.
In China, weak investment in property, infrastructure and manufacturing was offset by strong exports. Citi maintained its 7. 5 per cent forecast for China‘s GDP growth this year, adding the People’s Bank of China was expected to maintain its easing bias. 5 Billionaire Gerry Harvey reveals the fantasy behind …
A key factor in the reduced forecast was a significant downgrade to the gross domestic product growth forecast for the Eurozone. Citi shaved 0. 3 percentage points off its 2014 GDP forecast for the Eurozone, bringing it down to 0. 8 per cent.
US investment bank Citi has lowered its global economic growth forecast for the next two years, as well as reducing gross domestic product expectations for the Eurozone and several countries including Australia.
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