By Fatih Erkan Dogan
ISTANBUL
Global growth is not expected to recover for the next two years, credit rating agency Moody’s said on Monday.
Slow growth in China, stagnating economic performance in the Eurozone and structural problems in Brazil and South Africa are holding back growth, the agency said In a report released in its website.
The slowdown in China is one of the most important factors weighing on global growth, according to the report.
"The downturn in China’s property sector is underway, and the correction could be deeper and longer than currently assumed, with significant effects on the rest of the Chinese economy. A protracted period of lower growth in China would affect the rest of the world by dampening trade. These effects would unfold over several years," the report said.
The agency forecast that the G-20 countries would grow around 3 percent in 2015 and 2016.
However, Moody’s predicted stronger economic growth in U.S., U.K. and India.
The European Union is to grow 1 percent in 2015, and less than 1.3 percent in 2016, the report said.
Tightening money policy at the U.S. Federal Reserve would limit capital inflows to emerging markets like Turkey, Brazil and South Africa, and would drive inflation to higher levels in those countries.
Moody’s forecast that the Turkish economy would grow between 2.5 and 3.5 percent in 2015 and 2016.
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