Study: Stronger Global Economic Growth Likely In 2004

ByJohn S. McClenahen Although modest growth in the global economy this year is likely to be followed by stronger growth in 2004, that scenario is far from a sure thing, indicates a report from Manufacturers Alliance/MAPI, an Arlington, Va.-based business and public policy group. "The end of the Iraq war, combined with hopeful signs in the U.S. economy, economic stability in Latin America, and a more aggressive monetary policy in the Eurozone [the 12 European nations that have the euro as their common currency] are all positive signs for a struggling global economy," says Cliff Waldman, a Manufacturers Alliance/MAPI economist and author of the report. However, the global economic balance sheet has its share of liabilities as well, with Waldman mentioning low levels of capital outlays and high levels of unemployment in the U.S., the "structural" weakness of Germany's economy, and Japan's continued deflation.