News Story

12 October 2008 00:04 BST

World economy 'faces slowdown'

Monday, 26 Nov 2007 08:08

The US economic slowdown is expected to have a big impact

Printer friendly version

The global economy is set to fall to its lowest level of growth since 2002 in the next two years, according to a British economic consultancy.

The credit crunch, a slowdown in the US economy and even a post-Olympic hangover in China will contribute to the slump, the Centre for Economics and Business Research (Cebr) claims.

Its latest Global Prospects report states world economic growth will fall from 3.8 per cent in 2007 to three per cent in 2008 and remain unchanged in 2009.

High interest rates, the US housing market slump and low consumer confidence are among the factors it believes will dampen growth in the coming months.

Cebr believes a recovery from these conditions could be impeded by high energy and food prices.

It nevertheless predicts a recovery in 2010, when a resurgent US economy is expected to help the global economy bounce back to four per cent.

"Although we expect world economic growth to slow, this is partly a reflection of rapid growth in recent years," Cebr economist Sarah Bloomfield said.

"Growth will remain sanguine and is likely to return to a faster pace in 2010." End of story

More headline news...

Also In The News

Foreign students boost economy
A record number of overseas students attended British universities and colleges last year, providing a huge boost to the UK economy. Full Story

UK last in 'global knowledge'
A British Council report has found that students in the UK are the least curious about international issues among children in ten countries. Full Story

Oil edges toward $100 mark
The price of oil has edged nearer to $100 (£48) a barrel amid fears that a storm in the North Sea could hit production levels. Full Story

News Story

World economy 'faces slowdown'

Also In The News

Foreign students boost economy

UK last in 'global knowledge'

Oil edges toward $100 mark