Global Economy Review – June2014

US Federal Reserve (Fed) signaled that it would not raise its interest rates soon. The second estimate of the Q1 2014 Gross Domestic Product (GDP) growth showed that it shrunk 1% (annual) compared with 0.1% growth in the advance estimate and 2.6% growth in Q4 2013.

Eurozone GDP grew only 0.2% in Q1 2014 while growth for Q4 2013 was revised down to 0.2% from 0.3%. Meanwhile, the UK confirmed (in its second estimate) 0.8% growth in Q1 compared with 0.7% in the previous quarter. In its inflation report, the Bank of England said that the UK economy continues to strengthen, but more slack needs to be absorbed before a rate increase is implemented.

The Japanese economy signaled growth traction after its GDP expanded 5.9% on year in Q1 2014, following the downwardly revised 0.3% gain in Q4 2013. In China, most economic indicators released during the month pointed at sluggishness in the economy. (Data Source: Reuters)