VIENNA, (PNA/Xinhua) — On the back of 3.2 percent global economic growth in 2013, the Austrian Institute for Economic Research (WIFO) expects the global economy to see an improvement to 3.8 percent growth in 2014.
Despite a 0.4 percent negative growth prognosis for the year, WIFO expects the 17 countries of the euro area to see positive growth of 1.1 percent in 2014.
More broadly the EU-28 countries are expected to overcome negative growth of 0.1 percent in 2013 to 1.2 percent positive growth next year primarily due to stronger performance from Central and Eastern European economies.
Following its second period of recession in the past 5 years which put its production to 2006 levels, the euro area pulled out of recession in the second quarter 2013 with 0.3 percent growth.
European economic powerhouses Germany and France both saw considerable improvements in the 2nd quarter, with 0.7 percent and 0.5 percent increases in respective total economic output.
Further abroad, WIFO expects the USA to overcome its current political uncertainties and see growth of 2.5 percent in 2014. Japan is expected to have 1.9 percent growth, and China 8 percent growth on the back of positive indicators.
The United States is this year experiencing growth that is less dynamic but more robust, with construction investment particularly strong increasing 3.4 percent.
On the back of monetary expansion, the Japanese economy returned to positive growth in the fourth quarter of 2012 following recession, and improved further in 2013, WIFO stating private consumption was very important for further growth.
WIFO stated that much of the growth in these areas has been due to a shift in growth forces from developing nations to developed ones, with Brazil, India, and China all experiencing slowed growth, though this is expected to improve from 2014.