IHS Global Insight on the world’s economy: Stuck in a soft expansion

IHS Global Insight, Lexington, Mass., just released an early-bird glimpse of its May World Economic Forecast. IHS Chief Economist Nariman Behravesh and IHS Global Insight economist Sara Johnson , said, “The global economic outlook remains lackluster, with real GDP growth predicted at only 2.5% in 2013 and then gradually accelerating to 3.5% in 2014. The sustained weak growth is the result of deleveraging (including very tight fiscal policies) and political uncertainties in the United States and Europe.

“In the emerging world, there are few signs of a growth rebound and these economies (including China) will not be locomotives of global growth any time soon. Going forward, there could be positive growth surprises from the United States, Japan, parts of Asia, Africa, and Northern Europe. On the other hand, growth in Southern Europe and China could surprise on the downside.”