Summary

The steadily deteriorating global economic outlook is likely to dampen trade in Latin America and the Caribbean in 2014. Growth rates in developed countries are projected to show only a slight improvement over 2013. In the eurozone, the stagnation of the French and German economies caused growth projections to be revised down to less than 1%, while preliminary data for the second half of 2014 suggest that several eurozone countries could come perilously close to another recession. Meanwhile, Japan experienced exceptional first-quarter growth as consumers brought forward purchases ahead of a consumption tax hike in April, but this was followed by a plunge in economic activity as consumption subsequently slumped. Slight gains are expected over the remainder of the year, with Japan’s growth rate for 2014 now estimated at about 1%. The United States economy contracted in the first quarter, but returned to growth in the second. Overall, the world economy in 2014 is expected to grow more slowly than was projected in July, at close to the 2013 rate (see table 1).

Related Subject(s): Economic and Social Development