Global economic view for this year downgraded

Tough outlook: People shopping during the holiday season in New York City. Economists see good reasons to believe that the global economy still has a tough year ahead. — Reuters

LONDON: Global economic growth is forecast to barely clear 2% this year, according to a Reuters poll of economists who say the greater risk is a further downgrade to their view, at odds with widespread optimism in markets since the start of the year.

Falling energy prices, a slowdown in inflation in most economies from multi-decade highs, an unexpectedly resilient eurozone economy and China’s economic reopening have led traders to speculate the downturn will be more mild.