Global economy will likely grow by 4.3 per cent next year, with emerging markets such as China, India and Brazil leading the growth, said a report from Merrill Lynch Wealth Management.
This will mark the beginning of the much-awaited economic recovery, after global gross domestic product suffered from a 0.9 per cent contraction this year, said Bill O'Neill, the author of Year Ahead 2010.
"2010 is about recovery. It is about growth. So next year, we'll see that the hope for growth is transforming into actual growth – rising profitability, rising income and rising spending," O'Neill told Emirates Business.
The report forecast GDP growth of 10.1, 7.6 and 5.3 per cent in China, India and Brazil, respectively. These economies escaped contraction this year.
Developing economies are forecast to see growth with the United States and Japan seeing the biggest leap of 3.1 per cent. These countries have been one of the worst affected by the crisis with 2.5 and 5.6 per cent respective contraction in 2009.
The Euro area and the United Kingdom are also set to witness growth of 2.2 and 1.2 per cent, respectively, up from a contraction of 3.8 and 4.7 per cent.
In the GCC, Saudi Arabia is slated to see 3.1 per cent growth, similar to the US, while Kuwait is expected to see two per cent growth from a decline of 1.9 this year.
The UAE, however, is expected to see flat or no growth by next year. O'Neill, portfolio strategist at Merrill Lynch Wealth Management, Europe, Middle East and Africa, nonetheless said things are much better now than they were a week ago.
Cecilia Helland