Impact of sluggish China will hurt global recovery
Recovery in the United States will be offset by the ongoing slowdown in China and only a gradual Russian recovery from its recession, Moody's Investor Service has said.
Moody's said the eurozone and Japan would also be affected by China's sluggishness as it maintained its base forecast for growth among the G20 countries of 2.7% this year, rising to around 3% in 2016. That compares with 2.9% growth for last year.
Those forecasts remain below the G20's average growth rate before the financial crisis, and Moody's said it does not expect growth in the G20 to return to those pre-crisis averages within the next five years.
The main risks to those forecasts over the next two years include a marked correction in Chinese equity and property prices, the prospect of higher interest rates in the US and the lingering threat of a Greek exit from the eurozone.