Dun & Bradstreet’s 2010 Economic & Risk Outlook Report, released last week, suggests that major emerging markets such as China and India continue to experience rapid economic expansion and both the US and Europe have pulled out of recession.
However, the winding down of stimulus programs around the globe, high unemployment and a continuation of subdued bank lending are likely to result in a slowdown during the course of 2010. Consequently, more than 60 countries around the world are expected to record lower output in real terms in 2010 than they did prior to the crisis.
Those countries most closely integrated with the US economy in particular, are expected to continue to suffer from the effects of muted US demand.
Despite predicting a global slowdown, the D&B report forecasts positive economic growth at a global level and a promising outlook for Australia. World economic growth is expected to hit 2.0 percent this year and 2.3 percent in 2011. This comes on the back of estimates which indicate that the global economy contracted by 2.2 percent in 2009.
Meanwhile, Australia is expected to track Chinese demand which is forecast to continue at a relatively rapid pace this year. In addition, Australia’s key trading partners are expected to record positive economic growth this year however, Japan is expected to face a contraction in 2011.
The full media release is available below.