Solidation prevails in the United Kingdom and other member states.
• The divergent growth paths of developed and emerging markets, which foretell major structural shifts in the global economy.
Shape of the Global Recovery
In summer 2010, the ebbing of GDP growth in the U.S. and the succession of sovereign debt crises in the European Union raised concerns over the sustainability of the economic recovery. However, by year’s end fears of a “double dip” recession had largely subsided. The International Monetary Fund (IMF) forecasts world GDP growth of 4.2 percent in 2011, down from 2010’s 4.8 percent yet sufficiently robust to validate hopes for a rebound from the deepest economic contraction since the 1930s.
But the IMF projections indicate a highly uneven recovery, with large variations in GDP growth both between and within key regions of the global economy. These varying growth trajectories illustrate the following: