REUTERS
Expansion in the Group of 20 economies won't return to its pre-2008 rate within the next five years, credit-rating company Moody's said Tuesday in an update to its global outlook, Bloomberg reports citing Moody's.
Combined output growth in the group, which includes 19 nations and the euro area, will average 3% per year from 2015 to 2019, about 0.5% lower than in the decade through 2007, Bloomberg reports.
Among the factors that curb the world economic expansion are the crisis’s lingering drag on productivity growth, China's slowdown, unfavorable demographic trends and slowing gains from trade, Moody's said.
The analysts lowered their U.S. growth forecast for this year to reflect a slower-than-projected rebound in the second quarter, while leaving the G-20 growth forecast for 2015 unchanged at 2.7%, according to Bloomberg.
"The recovery in the U.S. and to a lesser extent, the euro area and Japan, will be offset by the ongoing slowdown in China, low growth or a contraction in Latin America and a stabilization rather than a quick rebound in Russia," Moody's said in a report.
As UNIAN reported earlier, the Central Bank of Russia announced it may revoke licenses of those rating agencies that have violated the methodology of rating assignment. The rating agencies will have to agree their methodology with the Central Bank, according to the requirement of the Federation Council based on the State Duma draft law "On the activity of credit rating agencies."