2011 will be characterised by an uneven recovery, leading different authorities to adopt diverging policies, which may raise conflicts and uncertainties, but also bring opportunities.
According to the year-end review of the global economy preented by glabl banking group Standard Chartered's, economic fundamentals vary considerably across the globe, and while the underlying trend is a global recovery, it varies considerably in scale. It will still be a tale of two worlds: a buoyant East contrasting with a sluggish West.
"We expect the world economy to grow further in size, from $62.3 trillion in 2010 to $64.7 trillion in 2011. Global trade has also recovered, and should continue to do so," tha bank said in a statement.
It added, "After growth of 3.7 per cent this year, we expect the world economy to grow 2.9 per cent in 2011 and 3.4 per cent in 2012. The IMF, by contrast, expects growth of 3.3 per cent in 2011 and 3.7 per c ent in 2012.
''Sometimes people talk about the glass being half-full or half-empty; In terms of the world economy, our view is that the glass is two-thirds full," Gerard Lyons, Standard Chartered's chief economist and head of global research.
"But in 2011, much attention will be on the one-third of the glass that is empty, namely the West. During 2010, the emerging economies, which represent one-third of global GDP, accounted for more than two-thirds of its growth.
This should be repeated in 2011. We foresee a sluggish Western recovery alongside growth in the East that might be slower than in 2010, but which is solid and sustainable.''