MRO Magazine

World economy to expand 3.3% this year

Ottawa, ON -- The world economy will expand by 3.3% in 2007, according to the Conference Board of Canada's World Ou...


Industry

August 8, 2007
By MRO Magazine
MRO Magazine

Ottawa, ON — The world economy will expand by 3.3% in 2007, according to the Conference Board of Canada’s World Outlook Summer 2007 report prepared by Kip Beckman, principal research associate.

The report examines the short-term economic outlook for the worlds major economies. In addition, the World Outlook contains an in-depth analysis of a number of issues that are relevant for understanding economic trends and developments in the world economy.

Here are some highlights from the report:

Slower growth in the U.S. economy will be offset by surging growth in some emerging countries as well as by the ongoing economic recovery in Japan and Europe.

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World growth will be restrained by rising interest rates in a number of key countries as central banks attempt to control inflation.

Globalizations winners and losers: There is no doubt that globalizationdefined as trading and increasing participation in the global economyhas helped lift millions of people out of poverty and created a vibrant middle class and much higher standards of living in some countries, such as China and Vietnam. Yet, the rise in globalization has also seen an increase in income inequality that has resulted in a dangerous backlash that could hurt trade and investment liberalization around the world.

Energy independence the Danish Way: Denmark has managed to accomplish what no other industrialized country has managed to do. Using a wide variety of government initiatives, the country has sharply lowered energy consumption while maintaining solid economic growth and low unemployment, but the cost has been higher taxes for both firms and households.

How to Avoid Dutch DiseaseThe Chilean Experience: Resource wealth has sometimes been a curse, as it can drive up their currencies, harm their exporters, and produce unwelcome surges in imports. Chile is attempting to avoid these difficulties as it copes with the soaring price of copper, by putting aside some of the windfall taxes and profits in a stabilization fund for investment overseas.

The publication can be accessed online at www.e-library.ca. For more information, visit www.conferenceboard.ca.