Global economy headed for further slowdown

Nov. 13, 2012 at 12:50 PM
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NEW YORK, Nov. 13 (UPI) -- The Conference Board, a New York research firm, said the global economy will grow more slowly in 2013 than its current 3.2 percent pace.

In 2013, the global economy will slow to 3 percent growth, the independent research firm said Tuesday.

"Mature economies are still healing the scars of the 2008-2009 crisis," Conference Board Chief Economist Bart van Ark said.

"But unlike in 2010 and 2011, emerging markets do not pick up the slack in 2012 and won't do so in 2013."

The economist said major economic developments for the year include the transition of leadership in China, the ability or inability for the United States to manage the so-called "fiscal cliff" and financial reforms in the eurozone.

Developed economies, slugging it out at 1.2 percent growth in 2012, will see growth of 1.3 percent in 2013, the Conference Board predicted. The bulk of that improvement can be attributed to a improved economies in the eurozone, where the economy is expected to grow only 0.2 percent in 2013, but that is much improved from the 0.6 percent contraction of 2012.

The research group said the U.S. economy is likely to slow further in 2013 with growth sliding from 2.1 percent in 2012 to 1.8 percent in 2013.

Economies in Africa are expected to slow slightly, posting growth of 3.7 percent in 2013 after 3.8 percent in 2012. In China, annual growth is predicted to drop to 5.5 percent in 2013.

India's economy is likely to slow down from 4.7 percent growth in 2012 to 3.9 percent, the Conference Board said.

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