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IMF's optimism on global growth wanes - Societe Generale

FXStreet (Łódź) - Kit Juckes, Global Head of Currency Strategy at Societe Generale comments on the World Economic Outlook report published by the IMF yesterday and revealing growth forecast cuts for various countries.

Key Quotes

"The IMF's World Economic Outlook, published yesterday, talks of 'Legacies, Clouds, Uncertainties'. July's mid-term update had the title 'An Uneven Global Recovery Continues', after April's 'Recovery strengthens, Remains Uneven'."

"The way the titles have shifted tells its own story and the IMF has given up on hopes of 2015 seeing 4% global GDP growth."

"The biggest forecast cuts are to Brazil (GDP growth revised lower by 1% in 2014 and 0.6% in 2015) and the forecast for non-oil commodity prices now looks for a 3% fall this year, plus another 4.1% fall next year."

"I'm not sure we should read too much into spot forecasts, but the suffocation of the IMF's optimism is pretty striking."

"Within the G7, 2015 forecasts have been cut in Germany, France, Italy and Japan. Of the main European economies, the only one where there is any (relative) optimism is Spain."

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