Recovery strengthens, remains uneven
The message from the IMF is clear: The global recovery is still fragile despite improved prospects, and significant downside risks—both old and new—remain. Recently, some new geopolitical risks have emerged.
According to BIMCO, the latest incoming data suggest a slight moderation in global growth in the first half of 2014. Global Growth is now projected to strengthen to 3.6 percent (-0.1) in 2014 and then to increase further to 3.9 percent (-0.1) in 2015.
Chief Shipping Analyst at BIMCO, Peter Sand, said, "As we have just highlighted in our newly released shipping market outlook - the global economic bumps in the road continues to impact the business environment across all major shipping segments. IMF's downward adjustments to GDP growth in Japan, Brazil, Russia and Emerging and Developing Europe is expected to have minor negative effect on shipping demand primarily for the dry and wet bulk segment."
IMF's expectations for GDP growth in US, China and India was unchanged from its January estimates, while growth in the Eurozone is now expected a bit stronger at 1.2 percent (+0.1) in 2014