Growth forecasts for the US and many emerging market economies will be 3%, that is .2% lesser than the May 2015 forecasts. The eurozone has only slightly reduced. UK enjoys an unchanged economy at 2.5% though NIESR is cutting its growth estimate for the three months to the end of September from 0.8% to 0.4%.
The Greek economy, identified as a key risk to global growth has its forecast based on uncertainty over the “large-scale debt relief”. It also revived the speculation whether the eurozone currency union can succeed without greater integration.
The NIESR also says the slowdown predicted in China is a growth of 3% instead of the official 7%.
Inflation is curtailed until the end of the year due to temporary low oil prices and the strong pound, but that it will return to 2% a year by 2017. Bank of England is likely to raise interest rates in February next year.
The Bank’s Monetary Policy Committee (MPC) is expected to leave rates unchanged at its meeting this week. MPC policymakers may have divided opinion for the first time this year on the need to raise borrowing costs immediately.