Tuesday 13 September 2011

Abu Dhabi wealth fund wary on global growth | Reuters

Rising government debt levels and inflationary pressures in emerging economies will cast a shadow on global economic growth, sovereign wealth fund Abu Dhabi Investment Authority (ADIA) said in its 2010 annual review.

The fund, whose assets range from Citigroup bonds to a stake in London's Gatwick Airport, expects economic growth to remain "hesitant" in the near-term but said it was confident equity returns will revert back to historical levels of 6-8 percent in a post-recovery phase.

"Looking forward, we anticipate global economic growth to remain hesitant in the near term as governments in major developed markets begin the sensitive task of cutting potentially burdensome debt levels without undermining growth," ADIA said in the report.

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