Clearwater Economic Institute Publishes Outlook: Services Growth to Offset Manufacturing Slowdown
The institute's autumn outlook forecasts 1.9 percent growth next year, with professional services and tourism carrying most of the expansion.
GENEVA β The Clearwater Economic Institute has published its autumn outlook, forecasting growth of 1.9 percent next year as expansion in professional services and tourism offsets a slowdown in manufacturing output.
Key findings
The report expects manufacturing to contract slightly in the first half of the year before stabilising, while services employment continues to rise. Inflation is projected to return to target by mid-year, allowing central banks to ease borrowing costs gradually.
"The headline number hides two different economies," said Dr. Nadia Haddad, Chief Economist. "Policymakers should plan for both."
Risks
The institute flags energy prices, trade restrictions and a weaker-than-expected housing recovery as the main downside risks to the forecast.
About the Clearwater Economic Institute
The Clearwater Economic Institute is an independent research organisation publishing economic analysis for governments, businesses and the public.
