Altan San Securities - Mongolia Investment - Economic rebound forecasts called “overly optimistic”

Economic rebound forecasts called “overly optimistic”

A sustainable recovery in the global economy would be a surprise to analysts at the Bank of America Corp. In a recent report, the bank dismissed proponents of an economic rebound as “overly optimistic” and said the “protracted credit cycle” may last through 2016. The continuing slump in the auto and housing industries will weigh on U.S. growth and limit consumption of raw materials, said an investment manager in New York.

A typical home uses about 99 kg of copper and a car uses about 22 kg. “We don’t really buy into the theory that the recovery is coming, because a lot of parts of the economy are still weak,” he said. However, even a sluggish recovery may help commodities because manufacturers have drawn down inventories.

Source: www.news.mn

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