So will the world economy recover or will there be a double dip? The world’s economic leaders are not very optimistic.
“Heavy debts will weigh on governments and households in the U.S. and Europe for some time, while hopes for global growth will continue to rest on fast-developing countries such as India and China, predicted participants at the meeting’s opening debate on the economy.”
However, it should be noted that the usually dower Nouriel Roubini was somewhat upbeat.
“The world faces a long, slow recovery “ending in subpar growth,” with the risk of a renewed recession along the way, said Nouriel Roubini, an economics professor at New York University who accurately predicted the financial crisis in Davos three years ago.
Mr. Roubini was uncharacteristically optimistic about the growth prospects for the world’s emerging economies. But even there he found nits to pick in the form of China’s risk of bubbles, Russia’s aging population and political obstacles to structural overhauls in Brazil and India.
Turning to bank regulation, Mr. Roubini was among those who argued for even more stringent measures that would separate commercial banking from investment banking.”
Read the whole article: At Davos, Experts See Dip Ahead – WSJ.com.