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  • RETURN TO GLOBAL ECONOMIC GROWTH
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1st April 2010 Economic

RETURN TO GLOBAL ECONOMIC GROWTH

It may not feel like this to you, but the world returned to significant economic growth in the last quarter of 2009. World GDP 5 change on a year earlier My chart, borrowed again from The Economist magazine, offers what I regard to be the most important single line on the planet. It shows remarkably consistent growth of 4 per cent a year throughout 2005, 2006 and 2007. Then we all fall off a cliff in 2008 to worse than minus 2 per cent, before bouncing back to plus 2 per cent or so at the end of 2009. The economists call this a V shape, far better than an L or W. It's certainly cause for hope.
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