Brussels — According to the latest BIR World Mirror on Recovered Paper Quarterly Report, 2014 started on a more positive note, with projections that global economies will grow at rates of over 3.5 per cent compared to 2.9 per cent in 2013. Emerging economies are projected to enjoy relatively higher growth rates, with the EU to expand at a much slower pace and the US economy registering some real growth.
Interest rate rises, geopolitical tensions and increased volatility in commodity prices during 2014 will continue to hamper recovery in the advanced economies.
For China and the USA in particular, the first quarter registered a slightly bumpy start -however, both economies are expected to stabilise during the year. The first two months saw a slowdown in China’s industrial production as exports contracted, but market sentiment is strong and expectations are of sustained growth by the third quarter. Export demand is projected to pick up even though China’s growth rate forecast for 2014 has been trimmed to 7.6 per cent.
Currency volatility has also continued to play its part with both the Euro and sterling maintaining their stronger position against the US dollar to make export pricing more challenging.The Indian rupee posted further losses, with weakness evident against all major currencies, but it may strengthen following the country’s election.
Source: Bureau of International recycling