The world is counting on a rebound in the United States to boost economic prospects following another year of meagre growth, according to The Conference Board of Canada’s World Outlook, Summer 2003.

“The world economy needs a stronger recovery in the United States, because many other economic powers are struggling in 2003,” said Kip Beckman, principal research associate and author of the outlook.

“Japan’s economy is still contending with deflation and is in danger of slipping back into recession. Europe’s economic growth is stagnant as five countries, including Germany, have gone into recession this year.”

The world economy is expected to expand by just two per cent in 2003, a slight improvement from the 1.8% real growth recorded in 2002.

World economic activity should pick up in the second half of 2003, leading to a growth rate in 2004 of 3%.

Tax cuts, higher government spending, and extremely low interest rates in the United States are expected to accelerate growth. World economic fortunes will also receive a boost from an anticipated decline in oil prices as the year unfolds.