Goldman Lowers Growth Forecasts For The World, Predicts Recession In France And Germany

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Goldman Sachs agrees that things are getting worse around the world. Here’s a rundown of yesterday’s predictions, courtesy of Bloomberg:

  • World GDP will grow 3.8 per cent this year and 3.5 per cent next year, compared to earlier predictions of 3.9 per cent and 4.2 per cent
  • Europe GDP will grow 0.1 per cent next year, compared to earlier predictions of 1.3 per cent. Germany and France will enter recession
  • US GDP will grow 1.4 per cent next year, compared to earlier forecast of 2 per cent. There’s a 1 in 3 change of entering recession.
  • The MSCI Asia Pacific ex Japan index will hit 480 in twelve months, compared to earlier forecast of 530
  • Commodities may rally 20% on emerging market growth, though this is a downgrade from previous estimates. The 12-month copper target was lowered to $9,500 per ton from $11,000. Brent crude will average $120 next year, down from earlier estimates of $130.

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