The developed countries will lead the way in a general pick-up in the global economy next year, according to the chief economist of Bank of New York Mellon, Richard Hoey.
Discussing the outlook during a Money Management/Super Review roundtable in New York, Hoey said his expectation was that the global economy would improve to some degree in 2014 — led by improvement in the developed countries, not by the emerging countries.
"If you take a look around the world the data in the UK has strengthened, in terms of Europe the double-dip recession did persist into the early part of 2013 and the good news is that double-dip recession is over," he said.
However Hoey said the bad news is that the pace of growth in the European recovery both in the first year and over the next several years is expected to be relatively sluggish.
"Nonetheless this has to be seen as positive change," he said.
Hoey also pointed to improved economic growth in the US, predicting around three years of three per cent growth.
The roundtable also pointed to China's economic growth stabilising at around 7.5 to 8 per cent. While this represented good news for Australia, BNY Mellon's Australian-based vice-president, intermediary relationships, Brigette Leckie said the outcome of the recent Federal Election posed an X-factor
She said that if the Senate proved to be more right-leaning than expected, the Government might move to higher levels of structural reform, including labour market reform, than had been expected.