YEREVAN, January 15. /ARKA/. Global economy growth will be 2.6% in 2014, a bit higher than in 2013 (2%), says HSBC’s projection.
According to the study, economy may grow by 1.8% in developed countries and 4.9% in developing countries.
The document says measures against inflation create preconditions for deflation in a number of countries and make the central banks face a difficult choice of toughening monetary and credit policies if positive economic indicators are recorded and softening the policies if deflation should be prevented.
According to HSBC, under circumstances of low inflation levels, countries overloaded with debts and US improved financial status, the yield of ten-year government bonds will decrease down to 2.1%.
HSBC is projecting a 6% growth of capital instruments and high one-digit increase in expected profitability, including dividends, says the document. It is not active expansion but growing profits that will contribute to higher profitability.
HSBC’s investment activity will prevail in Europe, but not in the US or Japan. A differentiation approach will be applied in developed countries, says the report.
The authors of the study suggest dollar races will continue in the forex market provided the Fed continues implementing its strategy of withdrawal, when fragile economies of the eurozone and Great Britain facilitate weakening of euro and pound. –0--