Perhaps with a short lag behind the already-slowing U.S. economy, global growth is likely to slow as well, says Global Insight, Waltham, Mass.
The economic forecasting firm predicts U.S. economic growth will likely slow to an inflation-adjusted average of 2.6% in 2007, down from a 3.4% average this year. Global growth will slow to 3.3% next year from 3.8% this year.
Europe and Japan will show slower growth -- as will China, forecasts Global Insight. "Even though China's growth accelerated to 11.3% in the second quarter [of 2006], we predict that the government will have some success is slowing growth from over 10% this year to around 9% next year."