GDP forecast to grow at just 1.2% in the West vs emerging markets at 5%

on Monday April 22, 2013 @ 2:36

Interesting geographical map from the Economist, forecasting worldwide GDP growth in 2013. The forecast shows the outlook for economic growth in the West is looking very bleak in contrast to developing markets.

The figures come from the IMF’s latest World Economic Outlook report, which shows that worldwide output is expected to grow at just over 3% in 2013, but rich countries in the West will lag behind, expanding at 1.2%.

Growth in emerging markets, by contrast, will exceed 5%, with Asia and sub-Saharan Africa motoring along at 7% and 5.6% respectively.

The IMF's report praises euro-area policymakers for avoiding a break-up, but notes that parts of the currency union are still uncompetitive and constrained by austerity.

The failure of cash injections to trickle down to households and businesses is dampening prospects, too. The American economy, though buoyed by recovering housing and credit markets, must endure the effects of the budget squeeze.

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