Recent data indicating a slowdown in the pace of economic deceleration should not be interpreted as the start of a global recovery, according to Dun & Bradstreet (D&B).
A new report released by the credit reporting and business intelligence firm has revealed that the outlook for the world economy over the next year still remains poor, believing it is too early for economic optimism.
The quarterly Global Economic & Risk Outlook Report warns against interpreting recent events as the start of a recovery, instead suggesting that the recent capital market upturn is likely to be a market correction rather than indicating improved fundamentals that are capable of pulling the global economy out of recession.
Consequently, the outlook for the global economy to the end of 2010 remains downbeat, with a deep contraction of global GDP forecast for 2009 (-2.6 percent) and only a very modest recovery (1.1 percent GDP growth) expected in 2010.
According to Christine Christian, D&B’s CEO, the global economic outlook remains overwhelmingly negative. “The uplift in sentiment experienced in recent months has resulted in a number of suggestions that the global economy is on its way to recovery.
“However D&B suggests that the events of recent months are a correction to market over-reaction rather than the start of a broad-based economic recovery.”
People who read this, also liked:
Business confidence soars
Small business confidence shows signs of improvement
