Global growth is back.
That’s the message in EDC’s recent fall Global Economic Outlook. The 3.6 per cent global growth projection this year, followed by an additional 3.8 per cent next, signals the end of what has been labeled a “start-and-stop” recovery and ushers in a new era of synchronized global growth not seen in the last decade.
Developing markets like India and China are leading the way with almost triple the growth of developed economies like the U.S., which is starting to gain momentum and will grow by 2.1 per cent this year and 2.7 next. Overall, emerging markets will outpace developed countries in the current global economy growth trajectory.
The good news is that the Canadian economy’s growth of 3.1 per cent this year, leads the developed world.
“In terms of our Global Economic Outlook, we see that world economic prospects are improving,” says EDC Senior Economist Ross Prusakowski. “For Canadian exporters, it’s really a positive sign that global demand is strengthening which means there is a growing market for their products.”
There are many variables that are taken into consideration when developing an economic forecast including some what-if scenarios. We talked to Prusakowski about the timely issues and indicators that could impact the forecast and ultimately, business decisions in the near future.