Thursday, July 26, 2007

World Economy Booming - for Some

Russia, India and China. Their rapid economic growth is expected to drive the world economy to a 5.2% growth this year, despite a lagging United States.

China's economy is expected to grow slightly faster than 11% while the US will be closer to 2%, provided it can contain the damage from its bursting housing bubble. Germany and Japan come in at 2.6% growth, slightly less than Britain.

The forecasts, produced by the International Monetary Fund, come with an inflation warning. The IMF says sustained, strong growth will be reflected in rising costs of energy, commodities and labour.

The IMF forecasts point to a major shifting in global economic power from West to East. It now appears to have reached a point where even a US recession will be a mainly local problem instead of a global catastrophe.

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