World: A soft landing in 2011

- "Europe’s cyclical momentum means that the chances of its dragging down global growth have lessened in recent months. However, a slowdown of the advanced economies next year is likely to bring a soft landing in 2011."
- "The U.S. badly needs more private-sector job growth to reduce its unemployment rate and keep the Fed from moving to additional quantitative easing. BEA revisions of past GDP numbers have reduced our expectation of 2010 growth, but we have revised up our outlook for 2011 in response to a higher savings rate and a less aggressive reversal of fiscal policy."
- "Since rock-bottom interest rates have encouraged Canadians to borrow from the future for spending on housing and consumption, the recent performance of the economy is no guarantee of its future as household dissaving comes to an end. We expect that strong 3.3% growth in 2010 will be followed by a deceleration of consumer spending and GDP in 2011."

NBC Monthly Economic Monitor Sep2010

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