EBRD trims growth forecast for 2020; global trade and autos pose risk

LONDON (Reuters) - The European Bank for Reconstruction and Development cut its forecast for growth in the region it covers, citing slower growth in global trade, with emerging Europe at risk from a slowdown in Germany and the auto industry.

Reuters November 07, 2019 00:06:35 IST
EBRD trims growth forecast for 2020; global trade and autos pose risk

EBRD trims growth forecast for 2020 global trade and autos pose risk

LONDON (Reuters) - The European Bank for Reconstruction and Development cut its forecast for growth in the region it covers, citing slower growth in global trade, with emerging Europe at risk from a slowdown in Germany and the auto industry.

The EBRD, which tracks trends in 37 countries across three continents, said in its latest economic outlook, released on Wednesday, that it expected average growth in 2020 of 2.9%, down from the 2.6% it forecast in May. It confirmed a growth rate of 2.4% in 2019.

"Economies in the EBRD regions face key risks from a possible further slowdown in the eurozone, a deeper-than- expected slowdown in China and any protracted weakness in the global automotive sector," said Beata Javorcik, EBRD's chief economist.

"Longer-term growth will depend to a large extent on how developments in automation affect the incentives for where production is located."

The EBRD also said it now expected Turkey's economy to contract by 0.2% in 2019, less than it had previously forecast, and then grow 2.5% in 2020. Russia saw its growth cut to 1.1% this year and 1.7% next year.

Graphic: EBRD November forecast - https://fingfx.thomsonreuters.com/gfx/mkt/12/8285/8216/EBRDNovember2019forecasts.png

(Reporting by Karin Strohecker, editing by Larry King)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Wall Street climbs on Cisco, Disney's upbeat results
Business

Wall Street climbs on Cisco, Disney's upbeat results

By Medha Singh and Shivani Kumaresan (Reuters) - Wall Street gained on Friday as Disney and Cisco's upbeat results brought the focus back to corporate earnings at the end of a volatile trading week that saw record surges in coronavirus cases and increased hopes of a working vaccine.

Gold jumps 1% on mounting pandemic, vaccine worries
Business

Gold jumps 1% on mounting pandemic, vaccine worries

By Sumita Layek (Reuters) - Gold gained as much as 1.1% on Friday as rising global coronavirus infections re-ignited concerns about the economic toll from the pandemic, while scepticism over the reach of a potential COVID-19 vaccine further boosted the safe-haven metal. Spot gold rose 0.8% to $1,890.81 per ounce by 11:33 a.m