World Bank reduces global growth forecast

The World Bank reduced its global growth forecast for 2014 to 2.8% real growth from 3.2% growth. The reasons: slower U.S. growth in Q1 and lingering geopolitical tensions such as the Ukraine crisis.

What’s the point? The World Bank’s economic forecast reduction is driven primarily by events that have already occurred and they pointed out that they expect growth to accelerate moving forward. Given recent economic data, particularly employment data, we agree with the forecast for accelerating growth, particularly in the U.S. This has positive implications for corporate earnings growth, which is a key driver of stock prices.

Link: http://www.reuters.com/article/2014/06/10/us-worldbank-economy-idUSKBN0EL2JX20140610