On February 24, 2010, the Toronto Star Reported on the Conference Board of Canada's Latest Global Outlook for 2010.
The following are the Conference Board's Projections.
China and India will lead the way in the coming global economic recovery, largely due to the huge government stimulus and infrastructure spending.
Even though China has not spent all of the 4 Trillion Yuan Stimulus Package, its GDP is still expected to grown by as much as 10% in 2010, following a gain of 8.5% in 2009.
India's economy will continue to benefit from ongoing infrastructure spending and, combined with an expected boost in tourism revenues from the Commonwealth Games in Delhi; should result in a GDP growth of 7.6% in 2010.
In contrast, recovery in Europe is still in the early stages and solid gains in GDP are not a sure-thing in 2010. GDP in Western Europe declined by 4.1% in 2009 and a small growth of 1.2% is expected in 2010.
Overall, the Global Economy is set to growth 2.9% in 2010, after shrinking 2.2% in 2009.
Glen Hodgson, the Conference Board's Chief Economist stated "While this is good news, recovery will remain tepid compared to the level of growth that normally follows a steep recession. We won't see more normal growth rates for the world economy until 2011 or 2012."
There is still worry about the banks in the U.K., Ireland and Spain; as they continue to cope with the meltdowns in residential real estate.
Troubled loans in Eastern Europe are also a concern for many of the region's banks.
Germany and France have been the first countries to emerge from recession, while Spain and Ireland are still dealing with the "after effects from the bursting of their housing bubbles, wth their GDP expected to decline again in 2010.
Latin America has weathered this global storm much better than in the past downturns and is poised for above-average growth of 3.6% in 2010.
"Better Macroeconomics policies are the main factor behind the improved performance" the report said. These include inflation targets, flexible exchange rates, good regulation and low exposure to mortgage-backed securities.
Brazil is set to show solid growth of close to 5%, this year.
Mexico's GDP dropped by 7% in 2009, the largest decline in the region, which is evidence of the country's close economic ties with the U.S. economy. Mexico's economy is expected to recover and grow by 3% in 2010.
Back in the Asia-Pacific Region, Indonesia is in the best shape. It managed to avoid slipping into recession last year, and solid growth of 5.4% is expected this year.
Malaysia, the Phillipines and Thailand are expected to grow by 4% in 2010.
In the U.S., ongoing weakness in the labor markets will result in a sluggish recovery, with economic growth of 2.8% in 2010.
Weak growth in consumer spending (not surprising given a fragile job market) will restrain overall economic growth this year.
In summary, the Conference Board of Canada's latest global outlook indicates that China and India are expected to have the highest growth in GDP for 2010.
Many people, companies and organizations have concluded the following things about surviving the global economic crises.
1. A good plan (to minimize your "down-side" or to increase your "up-side" is to "partner-up" with a fast growing economy (such as India or China), and
2. A good way to build your relationship with and show your "new partner" that you are really interested in them, is to make an effort to start learning their language (Mandarin, in the case of China).
Click here if you are interested in learning how to "build your partnership in China" by learning the Mandarin Language.
The following are the Conference Board's Projections.
China and India will lead the way in the coming global economic recovery, largely due to the huge government stimulus and infrastructure spending.Even though China has not spent all of the 4 Trillion Yuan Stimulus Package, its GDP is still expected to grown by as much as 10% in 2010, following a gain of 8.5% in 2009.India's economy will continue to benefit from ongoing infrastructure spending and, combined with an expected boost in tourism revenues from the Commonwealth Games in Delhi; should result in a GDP growth of 7.6% in 2010.In contrast, recovery in Europe is still in the early stages and solid gains in GDP are not a sure-thing in 2010. GDP in Western Europe declined by 4.1% in 2009 and a small growth of 1.2% is expected in 2010.Overall, the Global Economy is set to growth 2.9% in 2010, after shrinking 2.2% in 2009.Glen Hodgson, the Conference Board's Chief Economist stated "While this is good news, recovery will remain tepid compared to the level of growth that normally follows a steep recession. We won't see more normal growth rates for the world economy until 2011 or 2012."
There is still worry about the banks in the U.K., Ireland and Spain; as they continue to cope with the meltdowns in residential real estate.Troubled loans in Eastern Europe are also a concern for many of the region's banks.Germany and France have been the first countries to emerge from recession, while Spain and Ireland are still dealing with the "after effects from the bursting of their housing bubbles, wth their GDP expected to decline again in 2010.Latin America has weathered this global storm much better than in the past downturns and is poised for above-average growth of 3.6% in 2010."Better Macroeconomics policies are the main factor behind the improved performance" the report said. These include inflation targets, flexible exchange rates, good regulation and low exposure to mortgage-backed securities.
Brazil is set to show solid growth of close to 5%, this year.Mexico's GDP dropped by 7% in 2009, the largest decline in the region, which is evidence of the country's close economic ties with the U.S. economy. Mexico's economy is expected to recover and grow by 3% in 2010.Back in the Asia-Pacific Region, Indonesia is in the best shape. It managed to avoid slipping into recession last year, and solid growth of 5.4% is expected this year.Malaysia, the Phillipines and Thailand are expected to grow by 4% in 2010.In the U.S., ongoing weakness in the labor markets will result in a sluggish recovery, with economic growth of 2.8% in 2010.Weak growth in consumer spending (not surprising given a fragile job market) will restrain overall economic growth this year.In summary, the Conference Board of Canada's latest global outlook indicates that China and India are expected to have the highest growth in GDP for 2010.
Many people, companies and organizations have concluded the following things about surviving the global economic crises.
1. A good plan (to minimize your "down-side" or to increase your "up-side" is to "partner-up" with a fast growing economy (such as India or China), and2. A good way to build your relationship with and show your "new partner" that you are really interested in them, is to make an effort to start learning their language (Mandarin, in the case of China).Click here if you are interested in learning how to "build your partnership in China" by learning the Mandarin Language.
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