IMF: World Economic Growth To Resume in 2010
WSJ -- The IMF expects the global economy to expand at slightly less than 3% in 2010, said Jörg Decressin, a senior IMF economist, higher than the IMF's July estimate of 2.5%.
The chart above plots IMF data for real World GDP growth rates from 1980 to 2008 (actual) and 2009 to 2014 (projected). The IMF currently estimating that real world GDP will contract by 1.4% in 2009, with positive economic growth resuming in 2010 with a 2.5% expansion in world real GDP (data here).
Despite a global economic slowdown in 2009, the future looks pretty bright for world economic growth according to IMF forecasts of a resumption of 4-5% positive growth in the world economy starting in 2011 and continuing through 2014.
The chart above also shows the steep, upward trend line for world real GDP since 1980. Due to increased productivity, technological improvements, greater world trade, and the spread of free market capitalism around the world among other positive long-term trends, the trend in world economic output has increased by a full percentage point since 1980 (see trend line above), from less than 3% in 1980 to almost 4% today.
Bottom Line: One year of a global slowdown doesn't seem so bad during a 35-year period of unprecedented global expansion, characterized by a positive upward trend in the world economy that has boosted the annual growth in world output by a full 1% since 1980.