According to Yonhap News,

(SEOUL = Yonhap News) The international finance market is forecast to experience increases in interest and stock prices and the strength of the U.S. dollar in 2014.

The Korea Center for International Finance (KCIF) released the “International Economy and Financial Market Outlook 2014” report last week. It shows analyses of the economic forecast by 10 global investment banks (IB).

As stock prices increased by 20 percent, mainly led by the markets of developed countries, the global stock market nearly reached its peak in 2007. Sufficient liquidity and global economic recovery are expected to further raise stock prices, according to the KCIF. It also stated that the Korean stock market is expected to show a similar trend in 2014.

The long-term interest rate is expected to rise, but the upswing is predicted to be limited.

In the foreign exchange market, the U.S. dollar is expected to fluctuate while the euro and yen will remain weak due to loose monetary policies.

The Korean won will be under constant pressure for appreciation due to the current account surplus, but little change is expected, as it will be offset by the strength of the U.S. dollar.

Investment banks predict the world’s average economic growth rate will be 2.8 percent and 3.5 percent in 2013 and 2014, respectively, and developed countries will lead the improved economic growth rate, according to the KCIF.

The organization warns, however, that the growth rate of the world economy in 2014 will be lower than that before the financial crisis, and it is too soon to be optimistic about the global economy staying on a course of sustainable growth.

Many investment banks have noted that the world economy still faces various risks, including the end of quantitative easing in the United States next March, concerns over the failure of Japan’s Abenomics, the reform plans of China, Eurozone risk and vulnerable financial markets of emerging nations.

The KCIF held a briefing on the report on the 21st at the Korea Federation of Banks in Myeongdong.