We asked our readers last week to look into their crystal balls and predict what will happen in 2011. Most predicted that the world economy would slowly recover, though there was also strong support for the idea that Asia will post record economic growth next year.
Pessimists were in short supply, with few voters predicting our bearish options of a double-dip recession or an all-out trade war between China and the US. But not everyone shares our readers’ Christmas spirits. Nouriel Roubini, the self-proclaimed predictor of the credit crisis, has been a bit of a Grinch recently, claiming that Greece is set to default on its debts and that the eurozone will eventually fall apart.
But even Roubini says the worst of the crisis is over – and the end-of-year outlook pieces choking our inboxes right now are mostly in agreement.
In China, analysts are predicting another year of strong growth at around 8% or 9%, though inflation and a property bubble remain a worry. On the whole, that should mean a continuation of the recovery throughout Asia, ahead of the weaker rebound in the US and Europe.
Overall, 48% of our readers predicted a slow and unremarkable recovery for 2011, while 30% saw record economic growth in their crystal balls. The remainder were split equally between a trade war and a double-dip recession in the US, which each attracted 11% of the votes. Photo provided by AFP.
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