Aiden Manktelow, Director of the Economist Intelligence Unit risk briefing service reports that the economic performance of developed countries has been better than expected in recent months, and the outlook - at least in the short term - has improved.
But medium-term concerns have barely eased: the fiscal outlook in much of the developed world remains dire, household deleveraging has much further to run, and the stability of the euro zone looks tenuous. These factors will keep growth in the developed world below pre-crisis levels in the coming years.
In Eastern Europe, a fragile recovery is under way, but the region will continue to underperform its emerging market peers. Elsewhere in the emerging world the picture is much brighter. There are some immediate concerns. Rapid growth is raising fears of overheating and inflation is picking up, propelled in part by soaring commodity prices. This may cause policymakers in emerging markets to tighten policy abruptly. But emerging markets will still drive global growth into the longer term.
You can hear more about the global economic outlook from Aiden at the English UK Marketing Conference in London this Thursday, 27th January 2011.
For further details, click here.
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