Qauntitative easing is slowing down. 2014, will see further slowdowns in Fed bond purchases causing more volatility in commodity markets. As Western economies gradually recover, growth will migrate from East to West.
Worries persist over Chinese banks' loan books, with fears Chinese banks are overleveraged and loans are of poor qaulity. These banking concerns will trigger slowing growth in developing countries that have become reliant on Chinese infrustructural support. In the medium term, growth in developing nations is threatened by a strenghthening dollar and reductions in aid both from East and West.
Africa will see slight growth driven by primary industries. Volatility in commodity prices, all through 2014, willl limit medium term growth for developing nations. Western Europe has started rebalancing its books and recovery is on the cards with economies adjusting to structural rebalancing.
No comments:
Post a Comment