NIESR reveals latest global economic forecast

<p>The latest global economic forecast has been revealed by the NIESR.</p>

The National Institute of Economic and Social Research (NIESR) has revealed its latest global economic forecast and it predicts the world economy will grow by 3.3 per cent this year.

NIESR's report also stated there will be world economy growth of 3.7 per cent in 2014, with the US continuing to lag behind the rest of the world as it will grow just over two per cent each year.

It was pointed out by the body that the Euro Area remains in recession and NIESR forecasts that it will grow only about one per cent next year, while some upward revisions – most notably for Japan – have been offset by other downward revisions.

"This outlook reflects, especially in the advanced economies, weak demand resulting from several factors, especially continuing fiscal consolidation and deleveraging by private sectors, impaired credit intermediation in many cases and significant policy uncertainties," said the NIESR in a statement.

It added the ongoing slump in the eurozone is continuing to be a concern, with the region predicted to remain in recession in 2013.

The UK's economy grew by 0.3 per cent in the first quarter, meaning the country avoided slipping into a triple-dip recession.

But the NIESR predicts the UK's economy will be 0.9 per cent larger in 2013 and grow by a further 1.5 per cent next year.

Learn about the sterling and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.