Global economy to improve only slightly in 2013

LONDON: Next year offers only a slight improvement for a global economy hit by recession in Europe and slowing or moribund growth in Asia and the US, according to Reuters polls of hundreds economists worldwide.
After reaching 3.1 percent this year, world economic growth is expected to hit 3.4 percent in 2013, polls released yesterday said — a slight cut from July’s poll and slower than the International Monetary Fund’s latest forecasts of 3.3 percent and 3.6 percent.
While few expected 2012 would be anything other than a difficult year for the world economy, there had earlier been some hope a resilient US and faster-growing emerging markets would keep up the momentum.
This view has changed with economists polled over the last week saying at least some of the weakness will inevitably spill into next year.
Much will hinge on whether China, Asia’s largest economy, can pull out of its downtrend this year, and if the euro zone can contain its prolonged debt crisis.
Europe is expected to remain the biggest drag on the world economy next year, as its sovereign debt crisis continues to stew.
Europe’s main stock markets rose yesterday, shrugging off Standard & Poor’s slashing Spain’s credit rating.