A recent poll of hundreds of economists has revealed that the global economy will continue to struggle throughout 2012, but will begin to see significant growth by 2013.
Though many expected 2012 to be a rough year, even experts believed the United States’ resilience would keep the economy above water. Numerous successful emerging markets contributed to the nation’s hope. However, the U.S. is undeniably faltering, and Asia’s export market is suffering greatly from Europe’s falling demand.
Reuters explains that there is still “cautious optimism big Asian economies like China will start to recover by the end of this year, dragging the world towards better growth in 2013.
The global economy will grow around 3.2% in 2012 and 3.7% next year, the poll showed, a slight downgrade from April’s poll and slower than the International Monetary Fund’s reading of 3.9% for 2011.”
Standard Chartered’s Gerard Lyon explained:
“In the West the fundamentals are still not very good, confidence is fragile, and the policy cupboard is relatively bare. In contrast, across the emerging world, the fundamentals are mixed; confidence is a lot more resilient, and very importantly, the policy cupboard is quite full. The policy cupboard in the emerging world, particularly China, will play a key role in how things pan out this year.”