Analysts the world’s largest management company in the debt market Pacific Investment Management Co. (PIMCO) in 2014 expected a moderate increase in GDP growth in the U.S. and Europe and slowing growth in China and Japan , according to The Wall Street Journal.
However, experts believe the management company that the world economy as a whole in 2014 will showcase a wide and stable growth , largely due to a substantial strengthening of balance sheets of central banks . Growth in the value of assets , combined with lower uncertainty about fiscal policy in the short term will enhance global demand , said the fund .
PIMCO expects U.S. GDP growth by 2.5-3 % in 2014 . Experts expect more optimistic Americans against the backdrop of increasing the value of assets , stable job growth and a gradual easing of credit conditions that will lead to an increase in consumer spending. Meanwhile, the company for the first time since the crisis may increase the growth rate of investment.
Eurozone economy , analysts said PIMCO, will rise this year by 1-1.5% . Expected to reduce the negative impact of tax policy in the peripheral countries of the European monetary unit will lead to mitigation of credit conditions and increased demand , and enhance confidence in the consistent policy of the European Central Bank (ECB ) will cause the inflow of international capital on the stock markets of the region.
Japan is the only developed economy , where experts expect a decline in GDP growth from 3% in 2013 to 0.5-1% in 2014. The main reason for the slowdown of the economy of the rising sun will be to reduce an enabling policy, namely, to reduce government spending and raising taxes .
Finally , China’s economic growth in 2014 will continue to be slow and 6.5-7.5 %. Such a wide range of uncertainties of the forecast of the economic situation of the country. Experts point out that structural reforms in the PRC conducted too slowly, and the unfavorable situation in the credit market may prevent the national authorities in the implementation of measures to accelerate the transformation.