Global economy is forecast to grow by a solid pace of 4.3 percent this year and 4.5 percent next year, the Washington-based Peterson Institute for International Economics said here on Monday.
The unrest in North Africa and the Middle East, the spike of world oil and commodity prices and the earthquake and tsunami in Japan will slow global economic growth for at least the first half of 2011 and increase downside risks after that, said Michael Mussa, a senior fellow at the institute.
The latest projections are roughly in line with the think tank’ s earlier forecast last September of 4.3 percent and 4.4 percent for this year and next year, respectively.
An overall global recovery has been powered by a much stronger performance by emerging markets than by advanced economies, a pattern expected to persist at least through this year and next year, said Mussa.