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Global Growth To Pick Up In 2010, Risks Remain

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Signs of a strong second quarter performance for many of the world's major economies prompted economists to up their forecasts for 2010 global economic growth but a slowdown in the second half looks likely, a Reuters poll showed. Median forecasts from almost 50 economists showed the global economy growing 4.2 per cent this year, up from 4.1 per cent in the May poll, and slowing to 4.0 per cent next year. The survey sample was slightly smaller in May but the findings were similar on a like-for-like basis as well. While forward-looking indicators like purchasing managers indexes pointed to a strong second quarter for economic growth in the euro zone and Britain, they have also hinted at a slowdown in quarters ahead for all the big world economies. That said, fast-growing emerging countries like China and India will lead the way for sluggish developing economies -- many embroiled in budget austerity drives in Europe -- and the prospect of a double-dip global recession looks remote. "Globally, things are slowing, but ... deceleration is coming from what look like stronger levels of Q2 growth than many expected," said Dominic Wilson, director of global macro and markets research at Goldman Sachs in New York. "The toughest issue is how much to rely on better than expected growth outside the U.S.," he said. Growth in China, the biggest Asian economy outside struggling Japan, will gradually slow as the government withdraws anti-crisis stimulus and edge down to 9.0 percent next year from 10 percent this year, the poll showed. The range of forecasts for 2010 global growth was broadly similar to that seen in the May poll, although it narrowed a little for the 2011 forecast with a top end of 5.5 percent and low prediction of 3.0 percent. (Reuters)