The stabilization in growth forecasts for both 2014 and 2015 is a sign that perhaps the market is more confident now that the global economy is in the middle innings of an expansion. While the forecasts for GDP growth for 2014 and 2015 have generally moved higher for developed economies over the past 18 months, growth estimates for emerging market economies have generally moved lower. We do not expect a “hard landing” in China over the next few years; however, we believe investors who expect China to return to the 10%-plus growth rate of the early to mid-2000s will likely continue to be disappointed. Accelerating growth in the Eurozone would be a big boost for global growth, but thus far, the best the Eurozone has managed is stability.
Jason A. Jennings, CFP®
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The CERTIFIED FINANCIAL PLANNER™, CFP® are professional certification marks granted in the United States by Certified Financial Planner Board of Standards, Inc. (“CFP Board”).