US Economy should register above normal growth in 2011, with the backdoor fiscal stimulus (read extension of bush tax cut) and monetary stimulus (QE2) encouraging above par spending and investments on the ground. The improving economic outlook and rising business confidence will trigger risk taking and robust hiring by corporates, and therefore would take care of employment situation slowly. However, housing market will remain one big drag for the economy. Overall, the year 2011 in US will be the year of reckoning for the main street but not so much for wall street.
European Economy will continue to languish with high likelihood of sovereign default risk spilling over to portugal and/or spain. The order of Europe has become rigidly hierarchial and may cause political unrest anytime. Overall european growth will be bumpy and noisy.
The fast growth of Asian Economies is mainly due to the yawning gap in GDP per capita that exists between developed countries and the emerging countries (euphemism for poor countries). Since the gap is not filling any time soon, Asian tigers may continue to roar next year also. The risk of flare up in commodity prices, which China may once again be found fanning rather than dousing , may act as a speed braker for Asia. Overall we should not expect any major surprise from Asia other than what possibly could come from Korean peninsula.
Up next, India
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