Home | Growth | Standish: Confrontation between Ukraine and Russia unlikely to slow global growth

Standish: Confrontation between Ukraine and Russia unlikely to slow global growth

By
Font size: Decrease font Enlarge font
Standish: Confrontation between Ukraine and Russia unlikely to slow global growth

Heightened volatility possible.

Geopolitical risks brought on by the confrontation between Ukraine and Russia are unlikely to slow global GDP growth in 2014, according to the March Global Macro Views from Standish Mellon Asset Management Company LLC, the Boston-based fixed income specialist for BNY Mellon.

Standish continues to forecast global GDP growth of 3.5 percent in 2014 and 3.7 percent in 2015.

Share this:

"Ukraine is only a $175 billion economy in nominal GDP and is not likely to have much impact on the $73 trillion global economy," said Thomas Higgins, chief economist for Standish and a co-author of the report.  "Our base case is that the crisis in the region will not intensify, though it could continue to be a source of volatility in global financial markets."

"Ukraine is only a $175 billion economy in nominal GDP and is not likely to have much impact on the $73 trillion global economy."Looking at various regions, Standish continues to see 2.7% growth for the U.S. in 2014.  For the euro zone, Standish forecasts growth of 1.2% for 2014, slightly above the consensus of one percent.  

For the United Kingdom, Standish is forecasting GDP growth of 2.6% in 2014.  "The U.K. growth story remains strong, as increases in business investment such as buildings and machinery came in particularly strong in the fourth quarter of 2013," Higgins said.  

In other regions, Standish is looking for GDP growth in 2014 of 7.2% in China, 1.5% in Japan, 3.2% in Latin America, and 2.6% in eastern Europe. For Russia, Standish is forecasting GDP growth of 2.2%in 2014.  The report notes that the confrontation with Ukraine could spark investor concern that Russia's economic growth could be threatened by economic sanctions.

 

 

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha