2013 start of synchronised recovery - 2014, 2015 to accelerate, says ANZ

SINGApORE - For the world economy, 2013 will represent a medium-term cyclical low point for growth, while at the same time marking the start of a synchronised recovery in the advanced economies, ANZ Bank says in an update of its global outlook.

“We expect economic activity to accelerate in 2014 and 2015, largely on the back of stronger growth in the G3,” ANZ says. “Although some emerging economies have come under pressure this year, we expect stable-to-stronger growth in 2014.

The bank says emerging Asia is ending 2013 with activity on a slightly firmer footing, having weathered significant volatility in capital flows. “Stronger and more developed market growth should prove to be a key support to Asia in 2014,” it says, “and shift output to a more expansionary trajectory into 2014.
“Currency depreciation over the course of 2013, coupled with firmer external demand, may see inflation return as a policy issue in 2014. We would expect a number of ASEAN economies to start tightening cycles in the second half of 2014.” www.live.anz.com (ATI).