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Lackluster growth in 2014: Reason to cheer?

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While the global economy will continue to improve next year, growth will remain lackluster and unexciting, Credit Suisse warned - but added that this could be good news for equity markets.

In its report published Tuesday, called "2014 Global outlook," the bank forecast that global growth would accelerate to 3.7 percent in 2014, driven by a rebound in developed market economies. It expected 2.9 percent growth in 2013.

Credit Suisse added that central banks' commitment to easy monetary policy (which include low interest rates and extra liquidity designed to stimulate economies) would continue into the next year. This was as a result of what it called the "stable triangle" of "persistent but lackluster growth," low inflation and diminishing potential.

(Read more: Huge change could be coming in 2014: Schwab CIO)

"We think that next year is going to be reasonably stable, volatility will remain low but we don't see any massive acceleration in growth anytime soon," Rick Deverell, global head of product research at Credit Suisse, told CNBC on Wednesday.

But Deverell said this was good news for equities, which the bank expected to see double-digit returns in 2014.

"Where I think it will get really interesting with the equity market, is that in the world we're in at the moment, a lot of the impetus for equity markets is that companies are sitting on all this cash… and the best thing to do is to buy back their own stock," he said.

Whereas a pick-up in growth would lead to an increase in confidence and in capital expenditure, according to Deverell, "Suddenly they're not buying back the stock, they're investing. So stronger growth may actually lead to a world where equities underperform."

(Read more: Expect a lackluster 2014 for global equities: HSBC)

In its report, Credit Suisse's highlighted that its return expectations for equities had an "unfavorable skew."

"We do not expect returns to rise in the event of stronger-than-expected activity but think that they will fall if activity weakens," the report said.

No huge acceleration in 2014 global growth: Credit Suisse

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