According to a release from TD Economics today, the world economy is expected to expand by 3.8% in 2010. While this is positive, they also mention that
the road to recovery will not happen easily, or overnight.
While the recovery is underway, the report suggests that it will not develop the “head of stream” that was typical of past recoveries. As a rule of thumb, growth in real economic output during the first year of a recovery is generally two to three times greater than the decline in output was over the course of the recession. But when a recession is driven by a banking crisis, as was the recent global recession, an economy’s output grows more slowly for a number of years after the recovery has taken hold than is typically the case.
Canada’s economy is expected to grow at 2.7% next year.