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Tuesday, January 7, 2014

Economic outlook for 2014: domestic policies will be paramount

The economic outlook for the world in 2014 is the brightest since the crash of 2008-2009. Global GDP growth will be at least as high as in 2013. However, unemployment will remain stubbornly high, especially in the European periphery, and the expansion will be constrained by the struggle to control government indebtedness. Unlike in previous recoveries, there is no identifiable “locomotive” to drag the rest of the world on to a high growth path. So it is imperative that every country tackle its own obstacles to growth, especially by investing in human capital.