Salient to Investors:

The IMF said:

  • Global growth will struggle to accelerate in 2013 as the US expansion weakens, China’s economy levels off, and Europe’s recession deepens.
  • Global growth will be 3.1 percent in 2013, unchanged from 2012, and 3.8 percent in 2014. Developing economies will grow 5 percent in 2013, while developed economies will grow 1.2 percent. Downside risks to global growth still dominate, with the possibility of a longer growth slowdown in emerging markets.
  • US growth will be 1.7 percent in 2013 and 2.7 percent in 2014.
  • Wealthy nations facing low inflation and economic slack should keep injecting stimulus until recovery is entrenched, while rising longer-term interest rates have hurt emerging markets the most.
  • China will grow 7.8 percent in 2013, the Euro-pe will shrink 0.6 percent as France, Italy and Spain contract.
  • Growth in emerging markets including China will weaken as external demand growth has slowed and advanced economy longer-term interest rate volatility has risen.
  • Euro-pe should work towards a fuller banking union.
  • In 2013, Germany will grow 0.3 percent.  Brazil will grow 2.5 percent, Russia will grow 2.5 percent, Italy with contract 1.8 percent and France will contract 0.2 percent. Japan will grow 2 percent in 2013 on plans for record monetary easing and increased private demand.

Jay Bryson at Wells Fargo Securities said this is not the US economy of the 1990s that was a locomotive for the rest of the world, though the US remains one of the primary engines of growth.

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