Global growth was expected to be mildly supportive in 2015. The global growth rate is expected slow to 3.3% in 2015 after 3.4% in 2014 as GDP growth seemed to be normalizing to 2.0% in 2015 after just 1.5% in 2014 and to 2.2% in 2016, estimates Bank of America. This implies the growth trajectory remains substantially slower than the average 4.0% recorded in the decade to 2008.
Monthly electricity production would remain unchanged at current four-year lows this year, and GDP is expected to expand 2.0% this year and 2.2% next, says Bank of America.
"In a bearish scenario, we see monthly electricity production falling another 2% this year and GDP growth at roughly 50bp lower at 1.6% in 2015 and 1.8% in 2016", adds Bank of America.
As a result, downside risks to growth is expected, whereas, the sharp decline in oil prices since mid-20104 is supportive for growth.
