Global Economy, Economist | featured news

The question is whether that’s 10 years from now, or 10 years from 2008, which means we have six more years until the world economy truly recovers from the 2008 housing and derivatives bubble that first exploded in the Manhattan offices of Bear Stearns and Lehman Brothers. That’s the view of International Monetary Fund chief economist Oliver Blanchard.

The anti-austerity backlash - as seen at the polls in France and Greece - is already shaping a new debate in Europe... Europe's leaders will address a conundrum that divides economists: can you have austerity and growth at the same time?

The world economy will lose momentum in 2012 but it will keep moving in the right direction, according to Reuters polls of around 600 economists who said crisis-hit Europe would drag on global growth.

The United States will lead the rich world's economic recovery over the next two years while Japan and major European economies flounder by comparison, according to Reuters polls of more than 200 economists.

A raft of monthly economic data early next week could show that China's growth momentum is starting to peak, some economists say, as the impact of stimulus spending wears off and Beijing steps up its efforts to rein in property speculation and other excesses.

Economist says recovery is stronger than thought; 4-percent economic expansion expected this year.