Global economy poised to transition to growth

BEFORE you know it, another year has passed, and here we are again wondering what is in store for us in 2014. As usual, 2013 produced its share of uncertainty, yet we ended the year with more questions than we answered. Is the New Year going to be a year of growth especially in the US and will interest rates start to "normalise", or are we in for more volatility?

This year, we expect that with signs that the US economy is picking up momentum, the prospects for the global economy looks brighter. Citi analysts expect a modest reacceleration in global real GDP growth from 2.4 per cent in 2013 to about 3.1 per cent in 2014, the best since 2010, with growth in advanced economies (AEs) up from 1.1 per cent in 2013 to about 2.0 per cent in 2014.

Growth is likely to be around 3 per cent in the US and UK in 2014-15. On the other hand, Japan's growth is likely to slow significantly during 2014 as the consumption tax hike bites.