After undergoing an economic crisis of staggering proportions the global economy is finally on its path to recovery, and set to expand 4.4% in 2010 and 4.5% the following year, Goldman Sachs Group (GS) said in a report today.
“Our projections suggest that both 2010 and 2011 will be rather strong years,” a team led by Jim O’Neill, Goldman Sachs’s chief economist in London, wrote. “The combination of better-than-expected growth and lower-than- expected inflation should be good news for financial markets.” [Bloomberg]
Given the breadth and depth of manufacturing production cutbacks we experienced in 2008, is certainly encouraging to see these type of projections from the most profitable securities firm in Wall Street history. In addition, when considering the visibility on underlying factors for corporate earnings many economists had in 2008 for 2010, this is, again, very encouraging.