MAPI report: Global economic growth slowing

Weaker dollar only bright spot as recession looms
By Plant Engineering Staff January 28, 2008

Mounting concerns over the U.S. economic outlook, along with evidence of slowing in other key countries, suggest that 2008 will be a volatile and uncertain year for the global economy, according to a new report.

Economist Cliff Waldman’s report for the Manufacturing Alliance/MAPI

“U.S. weakness has a negative impact on the export prospects of many key countries that depend on external demand for growth,” Waldman said.

At present, exports may, however, provide a bit of good news for the United States.

Growth in non-U.S. industrialized countries, which include Canada, Western Europe and Japan, is expected to slow from 2.4% during the fourth quarter of 2007 to 2.2% during the first quarter of 2008 and then 1.9% for the balance of 2008.

Due to expected slowdowns in China, India, and Mexico, growth in developing economies is expected to slow from an estimated 5.4% during the fourth quarter of 2007 and first half of 2008 to 5.3% during the second half of 2008.