The global shipping demand remains subdued by slow economic activity, according to BIMCO, as the International Monetary Fund (IMF) lowers the outlook for 2014 amid lower growth than expected.
The IMF data forecasts world growth to come in at 3.3%; down 0.1 points from its previous estimate in July. The IMF has also lowered its growth estimation for 2015 from 4.0% in July to 3.8% now.
The lower forecasts stem from lower level of global investments, which in the long run will curb higher growth in the near future. The IMF also warned of increased downside risks, in the main that the financial markets have been overly optimistic about the future and the fact that tensions are still brewing in the Middle East and between Russia and Ukraine.
According to IMF, the economic recovery is becoming more country-specific, driving the need for more country-specific reforms. The battle is against high debt and unemployment leftover from the crisis, as well as a low growth in future.
“The pace of global recovery has disappointed in recent years”, the IMF said, noting that since 2010 it had been consistently forced to revise down its forecasts. “With weaker-than-expected global growth for the first half of 2014 and increased downside risks, the projected pickup in growth may again fail to materialise or fall short of expectation.”