The International Monetary Fund has revised down its growth forecast for the world economy to 3.3% in 2013. Emerging economies will once again lead the pack, growing by 5.3%. China and India look most impressive, though both have slowed in recent years. Rich countries will shuffle along at 1.2%, but that average will disguise a wide variance. America’s economy will expand by 1.9%; the hapless euro area will contract by 0.3%. Both have averted disasters (America’s fiscal cliff and a break-up of the euro, respectively). But high debt, deficits and uncertainty over the euro area’s periphery continue to act as a drag. In Japan, the recent fiscal and monetary stimulus will spur growth of 1.6%.
