{"id":166689,"date":"2010-01-11T13:01:00","date_gmt":"2010-01-11T18:01:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/morgan-stanley-big-ups-emerging-markets-usa-and-soverign-risks-in-2010-2010-1"},"modified":"2010-01-11T13:01:00","modified_gmt":"2010-01-11T18:01:00","slug":"morgan-stanley-america-will-crush-europe-and-japan-in-race-for-recovery","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/166689","title":{"rendered":"Morgan Stanley: America Will Crush Europe And Japan In Race For Recovery"},"content":{"rendered":"

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Global economic growth this year will be lead by emerging markets and a stronger than expected US recovery, Morgan Stanley predicts in its recently issued “Five Themes 2010” memorandum.<\/p>\n

Skip ahead to the details of Morgan Stanley’s predictions.<\/a><\/p>\n

The recovery will largely be a “tale of two worlds,” the bank’s economists say. Growth in emerging markets will be more balanced and significantly outperform the recovery in the G10 countries.<\/p>\n

In the developed economies, the recovery will be starved for credit and largely jobless. The US, however, will fare better than Europe and Japan, which will double-dip into a recession. Morgan Stanley is now projecting 5% US economic growth for the fourth quarter 2010, a big increase over its previous projection of 4.1%. it expects the US economy to grow at an average rate of 2.8% for the year.<\/p>\n

The differences in economic performance will impact interest rates and exchange rates. In general, however, central bankers will “crawl rather than rush” toward the exits of quantitative easing.<\/p>\n

The good news is that sovereign debt defaults will be less likely. Instead, governments will face a crisis of public confidence that they can handle their huge debt burdens without creating inflation.<\/p>\n

Let’s go through the predictions for the year ahead ><\/a><\/h2>\n

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