positive. Only time will tell, but there are many indicators that are
showing the future looks bright indeed!
All the best,
A Brighter Outlook for the Global Economy
World GDP to increase by 3.9% in 2010.
Advanced economies are mainly out of recession and emerging economies to
post healthy gains.
U.S. economy to grow by 2.9% in 2010 and 3.4% in 2011.
Housing market fragile although worst has likely passed.
Inflation concerns on backburner; Fed watching for labour markets to
Early 2010 failed to deliver job increases although U.S. unemployment rate
fell from recent high.
Fed to unwind stimulus gradually with liquidity measures pared back first
and rate hikes coming later in the year.
Canada's economy surprised to the upside in fourth-quarter 2009 and
prospects brighten for 2010.
Domestic demand revives, and exports recover as global economy firms.
Inflation has been stickier than expected although the large output gap will
prevent significant price pressures from developing in the near term.
The Bank is already reducing liquidity support with rate increases likely
investors appear to have more fully embraced the notion that the global
recession is a thing of the past. Growth reports remain mixed but by and
large indicate that most countries have cleared the hurdle needed to be in
full-fledged recovery mode.
The stronger than expected surge in U.S. GDP growth in the fourth quarter
and strengthening momentum in Canada's economy have made us more comfortable
with our forecasts of above trend growth in 2010 and 2011.
Similarly, the IMF revised up its 2010 world GDP growth forecast to 3.9%.
This was a solid upgrade to the 3.1% increase expected in October and about
double the pace projected in its April 2009 outlook. While investors can
breathe a sigh of relief on the state of the global economy