Subdued and volatile macro developments, as well as financing constraints remain a drag on companies’ profitability and cash
Global recovery remains fragile, without any big acceleration in sight. World GDP growth expectations have been revised downward for 2015 to +2.9% in real terms (after +2.6% in 2014), standing below +3% for the fourth consecutive year and well under pre-crisis trends, while world trade should only slightly pick up, one percentage point at a time, from +3.7% in 2014 to +4.5% in 2015 (compared to +7.5% average from 2002-2007). Moreover, recovery remains unevenly spread around regions and countries. The UK and U.S. carry global growth on their shoulders, while having challenges of their own to stand up to: most American companies still prefer issuing dividends and doing share buy backs to investing capital.
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