Asia is expected to deliver the strongest contribution to the growth, while North America and Europe will remain below their potential. The growth in world trade, however, will fall from 12% to around 6% this year, the report predicts.
While the United States is not likely to see a strong, self-sustaining upturn, Europe’s capital exporting countries, such s Austria, Denmark, Finland, Germany, the Netherlands and Sweden, will show an above-average growth. The latter is attributed to the fact that capital in these countries is increasingly reluctant to leave the home country.
Unemployment in the above-mentioned countries is likely to fall during the year, the report says.
In Europe’s capital importing countries, however, the recovery will remain subdued, mainly as a consequence of restrictive fiscal policies and the capital markets’ reluctance to provide further cheap finance.
The report foresees a slow recovery for Italy, Spain and Ireland, with Greece and Portugal remaining in recession.
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