World growth set to accelerate in 2014: Credit Suisse
The world economy will put on a growth spurt next year, accelerating to beat 30-year averages by growing by 3.7 percent in 2014, Credit Suisse said on Wednesday.
"Global GDP (gross domestic product) growth is accelerating for the first time in three years — and by the end of 2014 is likely to be above its 30-year average of around 3.5 percent (up from a trough of 2.5 percent in first quarter 2013)," said Credit Suisse analysts led by Andrew Garthwaite.
(CNBC Explains: Gross Domestic Product)
The global economy grew by 2.9 percent in the third quarter, year-on-year. World growth increased in the second half of this year, after three years of deceleration, raising hopes that the downturn that followed the financial crisis of 2007-8 was nearing an end.
Credit Suisse said recent global manufacturing PMI (Purchasing Managers Index) surveys — a leading indicator of economic growth — were consistent with accelerating growth.
For instance, JPMorgan's global PMI index rose to 53.2 in November, above the 50-mark that indicates growth, and its highest reading since May 2011.
In addition, growth will be boosted by the loose monetary and fiscal policies used in major economies around the world to help kick-start growth, said Credit Suisse — despite market jitters about when the Federal Reserve will start scaling back its massive $85-billion-per-month bond-buying program.
Last week, Credit ratings agency Standard & Poor's forecast the four central banks with the largest bond-buying schemes — the Fed, the Bank of England, the Bank of Japan and the Swiss National Bank — will pump around $1 trillion into the world economy in 2014, down from $1.6 trillion this year.
(Read more: EM 'shock' could push euro zone into decline: S&P)
Credit Suisse is the latest in a string of banks to forecast an upturn in global growth next year. On Monday for instance, Citi predicted growth of 3.1 percent in 2014, and like Credit Suisse, cited loose monetary policy across advanced economies.
Meanwhile, Credit Suisse said that the global financial system had become less vulnerable in the past three years, thanks to the U.S. private sector scaling back on debt, improvement in the euro area, and the Bank of Japan's policies to boost the Japanese economy.
"This should reduce the likelihood of negative feedback loops that disrupted recoveries in economic momentum since 2010. We note that bank leverage in the U.S. and Europe has fallen to a 30-year and 20-year low, respectively," it said.
(Read more: Why euro zone slowdown should worry the world)
—By CNBC's Katy Barnato