World economic growth to slow down at most for last 28 years: Deutsche Bank
Azerbaijan, Baku, Dec. 27/ corr. Trend A. Badalova/ World economy suffers the weakest growth since 1980s which is forecast at 1.2% in 2009 and 2.5% in 2010, the report of Deutsche Bank "From financial crisis to world recession" said.
"The investment strategy will face problems in 2009. Certainly, there are high risks but attractive opportunities in some classes of assets," according to the report.
Asia won't avoid world economic slowdown because economy of most countries of the region depends on export, Deutsche Bank experts said. There are some large economies with large independent domestic demand - they are China, India and Indonezia.
"But even China extremely depends on export, so, slump in the country will strengthen in 2009," the report said.
The positive fact is that sharp price cutting for energy sources is accompanied with the reduction in inflation, Deutsche Bank said. The further reduction in interest rates and fiscal actions will support the growth. The financial and corporative sector of Asian countries faced crisis in greater extent compared with currency crisis in Asia in 1998.
The growth in Asian countries except for Japan will make up 5.5% in 2009 and 5.9% in 2010, according to Deutsche Bank forecast. The growth in the region will make up 7.6% in 2008.
The European Stock market fell under influence of great number of contradictions, the report said. In the nearest time Deutsche Bank expects deflation as collateral effect of aggressive monetary incentives in European zone.
"It all attaches changeable character to market situation in 2009 but there is still a variety of opportunities for investors," the report of Deutsche Bank said.
Have any feedback? Contact our journalist at: firstname.lastname@example.org