Global economic growth to slow this year: NIESRAugust 5, 2015 - 14:19 AMT PanARMENIAN.Net - Global economic growth will slow this year to the lowest rate since the financial crisis, the National Institute of Economic and Social Research (NIESR) says, according to BBC News. 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 U.S. 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. While NIESR was generally upbeat about the UK economy, it believed that weak productivity would remain a challenge. Simon Kirby, an economist at the institute, said: "It's the major domestic risk." NIESR expects inflation to remain about zero until the end of the year due to low oil prices and the strong pound, but that it will return to the Bank of England's target of about 2% a year by 2017. Kirby said the rise in the value of sterling and a fall in oil prices would be temporary. The think-tank expects the Bank of England to finally raise interest rates in February next year. Economists polled by Reuters last month mostly expect the Bank to raise rates in the first quarter of 2016. The Bank's Monetary Policy Committee (MPC) is expected to leave rates unchanged at its meeting this week. However, there is expected to be a split among MPC policymakers for the first time this year on the need to raise borrowing costs immediately. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. |