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Cabinet Office Pegs Global Economic Growth At Just 1% In 2010

I have read enough economic forecasts over the last 2 years to realise that this forecast from the Japanese government is the first time that government has recognised the obvious that the situation we are in is not going to resolve quickly.

I am a firm believer in this being an L shaped recovery, and this report points in that direction.  There is just too much lag built into the shift we have experienced.  With such a dramatic and permanent drop in asset values we have seen, the natural deleveraging impact will take years to work through the system.

Cabinet Office Pegs Global Economic Growth At Just 1% In ’10 | Nikkei

TOKYO (Nikkei)–The world’s economic growth is likely to be limited to around 1% in 2010 on delayed recoveries in the U.S. and Europe, according to projections in a Cabinet Office report on global economic trends released Friday.

This prediction is less optimistic than those from such forecasters as the International Monetary Fund, which is calling for 1.9% growth in 2010, and the Organization for Economic Cooperation and Development, which projects 1.2% growth that year. Private-sector forecasts call for average growth of slightly more than 2%.

Researched by Nobuyo Henderson

Written by Colin Henderson

June 6, 2009 at 01:52

Posted in economy

Tagged with , , ,

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