A slowdown in the U.S. economy may drag on global growth next year, but Asia and Europe will remain fairly resilient due to healthy consumer demand, according to the Associated Press.“While the world’s other major economies will be affected by slower U.S. growth, their own domestic demand should continue to drive global growth,” UBS investment bank said in its year-end outlook for the global economy.
The biggest question is whether the U.S. economy will have a soft landing or slide into a recession. “We think it will be a soft landing, said Dong Tao, chief regional economist at Credit Suisse in Hong Kong. Also, as U.S. export demands slows, “Asia’s growth will be moderate.”
Global growth as a whole is projected to slow a little bit to 4.9% next year from an estimated 5.1 % this year, the International Monetary Fund predicts.