UBS, Citi cut global growth view, rule out recession

Bengaluru : BANGALORE | Thu Aug 26, 2011 6:05pm IST:UBS and Citigroup lowered their forecast for global growth, with sharp reductions to its euro zone view and more modest cuts for China, but ruled out the likelihood of a recession for now.

The cuts are the latest in a series of downgrades to global growth forecasts by major securities firms. Last week, Morgan Stanley cut its global growth view and said the United States and the euro zone are "dangerously close to recession."

UBS slashed its global gross domestic product (GDP) growth forecast for 2012 to 3.3 percent, while Citigroup cut its global GDP growth view for 2011 to 3.1 percent from 3.4 percent, and for 2012, to 3.2 percent from 3.7 percent.

Citigroup, however, said it does not currently expect recessions in the major economies as this slowdown in economic growth is not enough to reverse global profits.