Weak growth and a recovery that is “weak, uneven and in danger of
stalling yet again” is haunting the world economy, the latest
Brookings Institution-Financial Times tracking index warns.
that the worst fears of a
financial and economic crisis in January and February “might be over
but after yet another year of tepid growth in 2015, the world
economy in 2016 faces the unsettling prospect of more of the same.”
“The index shows how measures of real activity, financial markets
and investor confidence compare with their historical averages in
the global economy and within each country. There is evidence of
extreme weakness in emerging markets, with recent data from many
economies faring much worse than their historic averages, although
there has not been a further decline in 2016,” The FT reported.
"Unless governments demonstrate the ability and willingness to
undertake reforms and use policy measures to aggressively support
growth, even the anticipated weak growth could be knocked off
track," Prasad told the FT.
The report added to weak consumer spending and trade data in
suggesting economic growth moderated further at the turn of the
year after slowing to a 1.4 percent annualized pace in the
fourth quarter. Estimates for first-quarter gross domestic
product growth are currently below a 1 percent rate,
Reuters reported.
Meanwhile, “economists have dramatically cut their forecasts for
U.S. economic growth in the first quarter of 2016. Falling car
sales, equipment purchases by businesses and a downward revision
to consumer spending have darkened the view,”
CNNMoney reports.
For example, the Atlanta Federal Reserve's forecast for first
quarter growth is now 0.4%, a massive dial down from 2.5%
(Newsmax wire services contributed to this report).
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