Centre d’observation économique et de Recherche pour l’Expansion de l’économie et le Développement des Entreprises
The EUREN Summer Forecast 2010
Recovery of the world economy with imbalances - N°4, juillet 2010
22/07/2010
The EUREN institutes expect a recovery of the global economy. However, a considerable downward risk remains, since there is a split between developments in the real economy and on the financial markets.
Despite most industrialized countries being back to growth, the level of output will remain below the pre-crisis level. For the emerging economies, on the other hand, robust growth is expected with output surpassing clearly the level of 2008.
It is still not entirely clear how far the ongoing recovery is supported by the fiscal stimulus packages and to what extent it will sustain without state interventions. Most industrialized countries will have to follow controversial goals during the coming period: governments will try to encourage growth and promote job creation on the one hand, and handle fiscal imbalances and enforce some kind of fiscal consolidation on the other.
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