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Stronger Global Economic Growth Expected Despite Risks, Says BNY Mellon's Richard Hoey

U.S. Eight-Year Economic Expansion (2009-2017) Expected, Worries Could Hold Back Confidence in Europe

NEW YORK and LONDON, Aug. 8, 2014 /PRNewswire/ -- Despite geopolitical turmoil and global economic uncertainties, both the global and U.S. economy appear to be at an inflection point in mid-2014 to a somewhat stronger growth rate despite risks, according to BNY Mellon Chief Economist Richard Hoey in his most recent Economic Update. 

"After an initial global growth surge early in the expansion reflecting an easing financial crisis and aggressive Chinese stimulus, global growth has been running at a sustained but sluggish pace for several years," said Hoey.  "This has extended through the first half of 2014 since two major countries (the U.S. and Japan) were roughly flat in the first half of 2014 while the initial phase of the fragile European recovery from its double-dip recession was quite tentative."

"There has been a clear improvement in the U.S. labor market in recent months," Hoey continued.  "We expect mid-2015 to represent the transition from five years of U.S. economic growth slightly above 2% to three years of three percent growth in a 'three-for-three' pattern.  The expected acceleration does not reflect major new sources of strength but rather the fading of several drags, including the fiscal tightening and private sector deleveraging.  Thus we continue to expect an 'eight-year economic expansion' (2009 to 2017) in the U.S."

"Geopolitical turmoil has been occurring in a number of locations and appears to have worsened recently.  We are hopeful that a major disruption in the flow of oil from Iraq can be avoided, given the location of the Iraqi oil fields.  We do expect that there will be continued worry about the flow of natural gas from Russia to Europe this winter.  Those worries could hold back confidence in Europe over the next several months even if a major disruption of natural gas supplies to major European countries this winter can be avoided, which is our expectation," Hoey concluded.  Other report highlights include:

China Sustained Expansion Expected – Contrary to a talked about "Chinese financial meltdown scenario," Hoey expects a sustained expansion and a gradual downshift in Chinese trend growth over the coming years.

Japanese Expansion Resuming – Japanese real GDP growth should be reported to be roughly flat in the first half of 2014 in a very volatile pattern, according to Hoey.

European Recovery Sluggish but Sustained – While the Ukraine conflict and associated sanctions should weaken Russian demand for imports from Europe and raise uncertainties about the outlook for the European economy, the most likely case for Europe is sustained economic recovery at a sluggish pace over the next several years according to Hoey.

See for Hoey's complete Economic Outlook.    

Notes to Editors:

BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2014, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Learn more at, or follow us on Twitter @BNYMellon.

All information source BNY Mellon as of June 30, 2014. This press release is qualified for issuance in the UK, Europe and US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. Any views and opinions contained in this document are those of the investment manager, unless otherwise noted. This press release is issued by BNY Mellon Investment Management (US) and BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) to members of the financial press and media and the information contained herein should not be construed as investment advice.  Past performance is not a guide to future performance.  The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements.  When you sell your investment you may get back less than you originally invested. Registered office of BNYMIM EMEA: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company. 



Patrice Kozlowski

Louisa Bartoszek

+1 212 922 6030

+44 20 7163 2826

[email protected]

[email protected]



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