MORGAN STANLEY: The World Is A 'Less Risky Place Right Now'

The end of the tunnel may have gotten a bit lighter.

Earlier this morning, we told you Morgan Stanley’s economics team boosted its 2012 global GDP growth forecast to 3.7 per cent from 3.5 per cent, driven by an improved outlook for China.

However, the economists also lifted their bear-case scenario to 2.7% from 1.9%, based on the dissipating Eurocrisis, favourable central bank actions and improved purchasing power in emerging economies.

That’s a big upward adjustment.

“All told, the world looks a less risky place right now,” the firm writes, adding that “while risks remain decisively skewed to the downside, overall the world looks a somewhat safer place now.”

Here’s the accompanying graph:

chart

Photo: Morgan Stanley

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.