The picture for a global economic recovery seems to grow dimmer by the day. Just this week, the World Bank revised its global economic growth projection. Previously, the lender forecast a 1.7% contraction for 2009 back in March. But on Monday, the World Bank stated that it expects a 2.9% decline this year.
If you've been reading my Asia Insider for a while now, this bleak outlook for the global economy shouldn't come as any surprise to you. I haven't been expecting the world economy to recover this year, and have been, in fact, projecting it to contract even in the early parts of 2010.
That's because there are few economies in the world that will be able to post positive, let alone robust, economic growth in 2009.
According to the World Bank, this year the U.S. economy will likely decline 3%, the Japanese economy may contract 6.8% and the Euro area could shrink 4.5%. Talk about a dismal economic outlook…
Thankfully, all is not lost. China still remains the fastest-growing economy in the world this year with 6% GDP growth in the first quarter. And the country is on track to post 7% economic growth for the year.
That's why I've continually recommended strategic short-term trades in Chinese companies that are directly in line to profit from China's rebounding economy. Learn how you can start profiting today by joining Asia Edge!
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