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Moody's says downside risks to global economy have abated

    SYDNEY (Reuters) - Moody's Investor Services on Tuesday said downside risks for the global economy had receded in the past three months, though a number of dangers still remained.

    In its latest Global Macro Risk Scenarios report, the ratings agency also said it expected economic growth to be slow in many countries.

    "While our central forecasts are little changed, the downside risks have definitely abated over the past three months," said Colin Ellis, Moody's Senior Vice President for Macro Financial Analysis.

    "However, we still expect a subdued global recovery with sub-trend growth in most advanced economies over the near term, alongside a relatively soft pace of expansion in emerging markets as well."

    The ratings agency expects real growth for the G20 of around 2.9 percent in 2013, followed by 3.3 percent in 2014. It forecast growth in the United States this year, but expected the euro area as a whole to stagnate during 2013.

    (Reporting by Wayne Cole; Editing by John Mair)

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