FIVE EXPERT PREDICTIONS FOR GLOBAL ECONOMY

Posted By: C. Harrison

Global growth and acceleration to 3.5 percent in 2014 up from 2.9 percent posted in 2013, five experts from the International Monetary Fund asserted.

According to experts on the Council on Foreign Relations, developing economics will likely enjoy relatively high growth in 2014, while the United States will continue with real growth and Europe’s economy will expand very slowly. A. Michael Spence and Moody’s chief economist Mark Zandi expects the United States to experience its fastest growth in a decade, driven by a reduction in fiscal austerity, a resurgent housing market and the “Superb condition of American corporate, bank and household balance sheets,”

Europe is growing  and capital is beginning to return but officials face the challenge of bolstering the growth rate before markets again lose confidence in the reform process, which has been making policy makers stay afloat.

Ernesto Talvi of Brookings says, well managed Latin Americans countries that depended on abundant inflow of foreign capital will have to adjust their growth rates of consumption, investments and public spending. While Carnegie’s Yukon Huang stated that China can reach a more sustainable growth path if it deals with its debt problem and boosts productivity.

The U.S. economy is growing at 1.5 to 2 percent in real terms, the pattern of public-sector underinvestment will remain.

incidentally, Asian business leaders sees Feds tapestry as the largest threat to world growth.