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:
Photo: Morgan Stanley