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12/26/13

Global Economy: 5 Expert Predictions for the Global Economy in 2014 - by Mohammed Aly Sergie

The International Monetary Fund expects the growth of the global economy will accelerate to 3.6 percent in 2014 from 2.9 percent in 2013. Five top economic experts offer insights on how to read trends in different regions.

Developing economies will likely enjoy relatively high growth in 2014, while the United States will continue with real growth and Europe's economy will expand very slowly, says the Council on Foreign Relations' A. Michael Spence.

Moody's chief economist Mark Zandi expects the United States to experience its fastest growth in a decade, driven by a reduction in fiscal austerity, a resurgent housing market, and the "superb condition of American corporate, bank, and household balance sheets."

Europe is growing, and capital is beginning to return, which has made policymakers "buoyant," says CFR's Robert Kahn, but officials face the challenge of bolstering the growth rate "before markets again lose confidence in the reform process."

Well-managed Latin American countries that depended on abundant inflows of foreign capital will have to adjust their growth rates of consumption, investment, and public spending, says Ernesto Talvi of Brookings. Carnegie's Yukon Huang says China can reach a more sustainable growth path if it deals with its debt problem and boosts productivity.

Read more: 5 Expert Predictions for the Global Economy in 2014 - Mohammed Aly Sergie - The Atlantic

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