Global growth outlook seen intact as stock market rebounds

New York

WALL Street's solid rebound on Monday following a two-week roller-coaster ride preserved investors' outlook that the global economy remains on a steady growth path, analysts said.

Goldman Sachs and other analysts pointed to a number of factors behind their upbeat global forecast including China's plan to generate high single-digit growth, Europe's re-emergence from its sovereign debt woes, and US tax cuts and increased spending.

Goldman Sachs analysts said the current market turbulence poses only a "modest" risk to their "optimistic" view on the global economy. Goldman estimated the global economy was expanding at 5.2 per cent in January. "The history of market corrections during times of strong economic data suggests that this correction will more likely be short and shallow than long and protrac…