Eurozone’s GDP to Rise 2% in 2009 - Capital Economics

Business Materials 16 April 2008 18:45 (UTC +04:00)

Azerbaijan, Baku, 16 April / Trend corr A. Badalova/ According to the analysts of the Capital Economics, one of the leading economic research consultancies in the UK, the GDP of Eurozone will average 1.7% in 2008 and 2% in 2009.

"The slowdown will be especially marked in the G7 economies, where we expect average growth in 2008 to be roughly half the pace seen in 2007," the company reported.

However, the analysts believe that continued strength in developing economies, notably China and India, should keep world growth well above the 3%.

According to British analysts, the GDP of UK will rise by 1.7 in 2008 and by 1% in 2009.

"A global economic slowdown is now well underway, reflected not only in GDP growth but also in world trade," the report said.

On 9 April, the International Monetary Fund (IMF) divulged the forecasts for USA GDP - 0.5% in 2008 and 0.6% in 2009, a drop of 1.3% and 2.1% respectively from the previous forecasts. Moreover, the report says that the credit crisis may cost $1trln to banks and other fiscal organizations.

According to Capital Economics, USA GDP will rise to 1.5% in 2009.

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