from Greenberg Center for Geoeconomic Studies

The Gloomy Prospects for World Growth

September 10, 2009

Report

More on:

Economic Crises

Financial Markets

Overview

In this Center for Geoeconomic Studies Working Paper, Steven Dunaway argues that the outlook for recovery and growth in the world economy at this juncture appears rather gloomy. Lasting adjustment in imbalances is taking place only in the United States, and this will continue over the medium term. The result will be significantly slower growth in U.S. demand in the next several years. Hence, the main factor determining growth in the world economy will be whether other sources of demand will arise to take up the slack left by slower U.S. growth. At the moment, prospects do not look good. None of the other major economies appear inclined to make the necessary changes in policies to deal with their imbalances and raise their demand. Therefore, the world economy faces the prospect of a prolonged period of slower growth and greater volatility than it has known for several decades.

More on:

Economic Crises

Financial Markets

Explore More on CFR

North Korea

Victor Cha, senior advisor and Korea chair at the Center for Strategic and International Studies, joins James M. Lindsay to discuss North Korea and the aftermath of the Trump-Kim summit.

Russia

Presidents Trump and Putin have little to show for their rapport so far. Their summit will not be seen as a success without fresh approaches to issues from arms control to election tampering.

China

Background reading for the trade war with China.