January 21, 2010
World Bank predicts strong 2010 global economic growth

Shoppers in Shanghai. Photo: Al Jazeera

The World Bank released its annual economic report this week, predicting that the global economy will grow by 2.7 percent in 2010.

Despite the optimistic outlook, today the U.S. Dept. of Labor announced an increase in unemployment filings. General Motors said that it will cut 8,300 more jobs across Europe in its Opel subsidiary.

Also, new figures suggest that China is growing much faster than expected. China is poised to overtake Japan as the world’s second largest economy.

But many economists are worried about asset bubbles in China — and about the effects of stimulus packages wearing off.

What is your sense of the economy and where it’s headed at the beginning of this new year?

Tell us what you think in the comments section below. Please be respectful and on-point. Malicious or offensive comments will be deleted, and repeat offenders will be banned.

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Comments

24 comments

#24

Now is not the time to spend it is the time to save a prepare to ride out the second longer half of the recession.

Perhaps that 2.7% rise is due to larger than average bank bonuses because banks are not reporting loan defaults on their balance sheets ?

Tell me of great wizards of the world bank, what about the 2.4 trillion dollars worth of adjustable rate loans made during the height of the US Housing bubble that are due to reset within the next 30 months ? How is it possible that the pending second half of the housing crisis will lead to a rebound in the US economy ?
Or perhaps you just making the whole thing up to try and stop it form getting a whole lot worse. If you tell your lies long enough perhaps some of the sheep will follow you off an economic cliff. Where are all the jobs at ? Where are the loans to start new business ?

#23

Thanks to inept Democrats and corrupt Republicans we can watch ourselves circling the drain. One party two heads, voilĂ  the Plutocracy of the USA. No job creation of value, wars draining the economy, Wall Street now can uninhibitedly finance political campaigns that will protect the thieves thanks to our Supreme court. Obama can distance himself from a paltry health care bill that serves the insurance and medical industries. He has not fulfilled one promise with any integrity. So much for hopey/changey. Life in the US of Plutocracy.

#22

Sorry Bill, it is more complicated than that! Time for you to Google “prout”. Universal economic salvation.

#21

It will only get worse, this next year and there after, as long as Obama and his people are running and doing what they are with the country.
Spend, tax and waste.
Makes me wonder if they are not aiding Osama Bin Laden, who said he would ruin the USA finacially.
Bill Kauffman, Suanville, Ca.

#20

I guess that we all have views but Obama gets an F rating on the economy. His taking care of the banks and investment houses on Wall Street only underscores who really controls America. It will take business to get the country going full steam. Money to back up small banking concerns to loan money to credit worthy individuals and businesses, tax credits to America’s companies to provide jobs in American to Americans not to foreigners from any nation and tax credits to American companies to train the American worker on jobs that they say the American workers are not qualified for. Last Obama needs to shed his Chicago people from his Administration - if not they’ll cost him the 2012 election and pose an even bigger problem for our country. Geo W Bush and Dick Cheney allowed this country to get into this mess - but we voted Obama in to fix it - and the economy should have been his main focus and he should have set up a “crisis management team” similar to what FDR did during the great depression - but have business at it’s core. Jim @ USA

#19

To recover, first we have to remember we are a free country; close our borders to give Americans jobs; stop pandering to illegals, giving FREE money and hospitalization to illegals which is forcing hospitals to close emergency rooms or elevate charges to citizens; immediately deport
illegals who break our laws; add 1,ooo troops to patrol our southern borders.

#18

wow lots of comments . We have to go back to the early 2000’s when MBNA under bush rewrote the bankruptcy law that changed the way credit card companies do business. Doubling the monthly payment and giving discover the power to raise their interest rates when youre late on your mastercard did nothing but kill the economy at the expense of the working man. Many of us foolishly invested in our homes because we were told that it was a secure investment. My debt is due to improvements to my home which has lost almost 20% of its value , which i can not sell except at a loss to my real investment. I work in construction and have only worked 11 weeks in 2009, partly because i was in an accident on my way to work and the girl who hit me did not have insurance. That increased my debt by almost $25k that my “uninsured motorist” policy I have paid for the past 20 years, is not paying. (theyre not paying on the uninsured punk who ran into my wife in april 2009 either) So if the past is any reflection of the future, insurance companies will be broke ( if i can get my lawyer to step up the pace) , housing will be stagnant, jobs will continue to disappear, and America will be the poorest 1st world nation. The fault lies with the leadership of the past eight years and those that did not learn from the Reagan years ..remember the 80’s and the Savings and loan debacle…regulations are necessary when you have mans greed in the mix. We will all have jobs working for $10 an hour with no benefits… the window is open and the American dream just fell out….

#17

We are in the current economic fix because we spent money we didn’t have to buy stuff we didn’t need. Now, we are borrowing money we can’t repay to finance a war we can’t win. Our future depends on banks who don’t care making loans to people who don’t have jobs. I am not optimistic.

#16

Traditionally, GDP has been considered as a guage for economic growth. What about other macro-economics factors such as # of unemployment? Many people are actively seeking jobs, and the global economy keeps slashing jobs. we need to see the big picture such as job creations within an economy and talk about the GDP figures later. my conclusion: the 2010 economic outlook will be gloomy .

#15

People need to start pulling their heads out of their asses and start creating jobs in these open markets.

#14

The world can only take so much thoughtless consumption. Only if economies continue to expand recycling technologies, renewable energies and sustainable agriculture will we be able to overcome these long coming problems of instability.

#13

Now it is complete, after this new Supreme Court ruling we are now a Argentocracy.

#12

Mr Marcus Mabry echoed President Obama’s attack on banks by blaming banks for failing to lend money to industry, bothbig and small companies. The fact is any prudent company is withholding any borrowing for expansion, growth and hiring because the tax increases on businesses and individuals embedded in Obama’s programs, Obamacare for one, and the promise to allow the business and individual tax cuts to expire in 2011 are economic killers. Uncertainty is the bane of businesses and the Obama administration is the epitome of uncertainty when it comes to companies making business decisions. While Obama attacks commercial banks Freddie Mac and Fannie Mae both now government owned and protected by Dodd,Frank and friends in Congress are the largest recipients of
taxpayer funds and there is no limit now how much more taxpayers funds, capped until recently at $400 billion, will be poured into these two to bail them out. Banks are not the problem, they are the whipping boys, government policies are.

#11

No jobs have come from the stimulus therefore there ecoomy will dip again. It was he lack of jobs that created the ousing problem since you cannoy afforda house withot a job. So first our gvernment failed to protect our jobs and second from the housing bubble ceated Paulson who saw it as solid economic growth (what an idiot). And nw we got bank refrom to hold done bonuses. More concerntration on cuts and bruses rather than the heart attack, stroke, and compund fractures. Jobs Jobs Jobs, need I say more?

#10

Well I did see a report where 2010 was suppose to be like 2009, and then in the first quarter of 2011 the economies are suppose to pick up. Do you think the U.S and other countries can learn anything from China? They seem to save alot of their money and don’t spend spend spend. Of course you need GOOD jobs to save any money. When are we going to quit sending all of our jobs overseas?

#9

The banks make the laws governing banking and therefore take money for no (almost no) valuable work. The supreme court now wants corporations to have the same ability to extract any wealth left in the middle class. The outlook is bad for this no-longer democratic country.

#8

IF Only BIG GOV’T.WOULD GET OUT OF THE WAY . STOP ALL THE TAXING &SPENDING ON FOOLISH THINGS .
Gov’t JOB is to protect & serve to which they are DOING LITTLE OF BOTH VERY WELL !But,IF… your a terrorist you might got a upper -hand ?..Lawyer !

#7

Does history have to repeat itself? Remember how Rome failed it outsourced food drink and any manufacturing. It concentrated on education and arts of its citizens that were wealthy.
I believe the USA is headed the same direction good luck to us all.

#6

I think with decades of over-buying and wasteful living we’ve really dug a hole for overselves that a few stimulus packages and a few months will not heal. The recent practice of “outsourcing” by American companies may be a means of “shooting ourselves in the foot”. We should be manufacturing more for ourselves and for export and not permitting foreign goods to dominate our markets. I read labels that say for example “Martha Stewart for Macy’s” “Made in China” or “Chaby International, Phila. USA”. Then in another spot on the same item, “Made in China”. We’re losing all of our industries. Surprised that we have ten percent unemployment? I’m surprised that it’s ONLY ten percent.

#5

china’s economy has been inflated by excessive speculation and government intervention and what is holding up the usa economy is government stimulus so as these are the largest ecomonies if the government stimulus is withdrawn growth will suffer. i do not believe there will be a return to where the world was at the brink but the united state will have slow growth and there probably be air let out of the real estate bubble in China. i do not think there will be fast growth in employment in the usa in 2010. the stock markets around the world will not advance this year and may end up moderately lower than where it ended in 2009 only because there were too high expectations.

#4

I believe the economy is going to continue to improve, though very very slowly. I feel that President Obama’s initiatives in the USA will not be seen until 2010; however, the USA must take steps to reduce the deficit and I for one don’t mind an increase in my taxes. It wld be appropriate to charge each person or family with an income of more than $200,000.00 an extra percentage of surcharge.
President Obama cannot change the Bush/Cheney policies of 8 years in just one year.

#3

Spoken like a true Liberal TomVA.

#2

Obama has forgotten his promises to provide jobs by building wind farms, solar farms and rebuilding the infrastructure. Without jobs, we are going nowhere.

#1

This is an average for the whole world.
I would look at each country one by one.
China is not as transparent as North America.
A lot of the figures they put out many believe are false.

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