Ideas about the Global Economy in this 2011
Author: Clay Hillary
When global economy, advanced economies fell into the worst recession since the Great Depression, in late 2008, much of the world downhill shot with them at the most acute. But then, unlike other times in the past, the “emerging” economies resumed their career and returned to their previous levels of growth, while the most advanced economies still painfully travel the road to recovery.
The president of the U.S. Federal Reserve said that it will be “four to five years until employment is restored” in his country, attributed the growth forecasts of 2.3% in 2011.
This year, according to IMF estimates, the advanced economies will grow 2.2% in average, well away from the 6.4% averaged emerging. This distance is even larger (four times or more) compared the expected trend for economies like India (8% increase in GDP) and China (9.6%) with the paltry 1.3% estimated for the euro area .
Overall, the global economy will grow 4.2% this year (4.8% last year) as estimated in October Fund
The two-tier international revival will be the dominant feature of the year, with weak growth in advanced economies will affect only employment and on the other hand, emerging countries faced with “problems of economic success” such as avoiding overheating and handle the surge of capital that comes to its shores in search of better returns. That was the picture painted by the 30 December the IMF’s chief economist, Olivier Blanchard, the IMF Survey Online publication.
“The two-speed recovery is remarkable and increasingly marked traits. Probably dominate in 2011 and beyond, “said Blanchard, who was interviewed.
“A key feature of the global economy today is that is running at two speeds,” he wrote in December, the Columbia economist Jeffrey Sachs. “Relegated to the sub-Saharan Africa was about to grow by 5% in 2010,” he said, while developed economies scratched modest growth.