Deliver Your News to the World

Deloitte Global Economic Outlook Q4 2009 examines the shape of recovery


Better-than-expected economic performance is common thread among regions

New York — As the calendar year draws to a close, a global economic recovery is all but certain, but risks remain, according to the latest issue of the Global Economic Outlook (GEO) — the quarterly publication from Deloitte Research, a subsidiary of Deloitte Services LP in the United States. It offers perspectives and insights on the almost synchronous recovery in several economies around the world and the near- to medium-term outlook for each.
Highlights from the GEO Q4 issue include:

* Financial indicators suggest a stronger than expected recovery for most of the world’s major economies.
* Credit markets’ behavior will be a critical issue, as weak credit markets could substantially offset the otherwise positive impact of aggressive monetary policy.
* For the US, the recovery will be a different beast when compared to past recoveries: instead of the consumer driving the recovery, government spending and exports will lead the charge.
* A cautionary forecast for the United Kingdom, as the lingering effects of massive consumer debt will subdue consumer spending into 2011 and possibly beyond; growth will come, instead, from a boost to exports and investment.
* The strong Chinese recovery — no other major country in the world has performed as well — is being generated by massive fiscal and monetary expansion. While this is boosting growth quickly, it is also setting the stage for potential problems down the road: inflation, excess capacity, among others.
* The Russian economy is expected to grow next year. Yet the strength of the recovery will depend on many uncertain factors including the price of oil, the state of global capital markets, the fiscal and monetary stance of policymakers, and global investor confidence.
* Despite a deficient summer monsoon, the Indian recovery will likely be strong and will accelerate on account of a healthy fiscal stimulus and a robust recovery in industrial production.
* Japan will most likely see a modest and fragile growth, as it finds its footing under a new government.
* Finally, the Eurozone is already experiencing a surprising economic recovery. The region is in for some relatively strong growth due to a revival of exports and demand from trading partners, and a rise in consumer spending.

Attributed to Ira Kalish, Director of Global Economics, Deloitte Research, a subsidiary of Deloitte Services LP

“The common thread of all our analyses seems to be a better-than-expected economic performance. Most of the world’s major economies are now growing and some, like Japan and the Eurozone, are growing sooner than most analysts expected. The global crisis was notable for the near synchronicity of the downturn. Likewise, the upturn appears to be happening everywhere at once—something that is not usually the case.”

For additional quotes and to read the full report, please visit

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s approximately 169,000 professionals are committed to becoming the standard of excellence.


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.