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From: Biniam Tekle (biniamt@dehai.org)
Date: Tue Dec 21 2010 - 11:58:28 EST
Global growth to slow says Economist Intelligence Unit; Eritrea to be 2011
growth leader
By Finfacts Team
Dec 17, 2010 - 2:35 AM
2011: country by country, just published by the Economist Intelligence Unit,
predicts that growth trends in the New Year will diverge between the rich
and developing world. Global growth will slow as fiscal stimulus is
withdrawn and emerging markets will continue, to a large extent, to shrug
off the 2008-09 economic crisis. Eritrea, the former Italian colony, which
won independence from Ethiopia in 1993 after a long bloody war, is set to
become the world's top growth leader in 2011.
Meanwhile, the developed world will remain preoccupied with sluggish
growth, high employment and rising debt burdens. Anjalika Bardalai, the
Economist Intelligence Unit's Country Report Manager and the Editor of 2011:
country by country, comments: "Balance will be a defining theme of the
global economic landscape in 2011. Scores of governments will be preoccupied
with trying to get the balance right between fiscal consolidation and
economic growth. Meanwhile, many emerging markets will struggle to balance
capital inflows, exchange-rate management and inflationary pressures."
Downside risks to economic stability also abound. These include:
- The possibility of a double-dip global recession
- The threat of sovereign defaults in several countries, notably in the euro
zone
- Deflationary pressures in several key developed economies
- New asset bubbles in emerging markets
- A rise in social unrest, given slowing economic growth and fiscal
austerity measures in many countries
2011: country by country, the well-established annual forecasting guide from
the Economist Intelligence Unit, contains a concise assessment of the
political and economic prospects for the year ahead for almost 200
countries, together with key economic indicators and a summary of forecast
numbers.
Highlights in the 2011 edition include:
World GDP growth (using market exchange-rate weights) will slow to 2.5%,
compared with 3.5% in 2010...
Eritrea will overtake Qatar as the world's fastest-growing economy, as
production begins at the country's first operational goldmine.
The world's worst-performing economies will be concentrated in western
Europe, which accounts for 12 of the world's 20 slowest-growing economies in
2011.
Eurozone interest rates will remain at a record-low 1%, but the European
Central Bank could face growing pressure to implement unorthodox policy
measures to boost growth.
Chile will continue to stand out as the most stable and resilient economy in
Latin America. Post-earthquake reconstruction will drive growth.
Eleven out of the 20 fastest-growing economies will be in Sub-Saharan
Africa, but growth in the region will continue to be driven by exploitation
of natural resources.
Although still strong, growth in China will be the slowest since 2001.
Nonetheless, China will remain the world's fastest-growing major economy.
----[This List to be used for Eritrea Related News Only]----