The latest World Economic Outlook (WEO) report from the IMF forecasts global growth to average 3.6% in 2014, which is up from 3% in 2013. The growth forecast for 2015 is, even more, promising at 3.9%.
The global recovery is becoming broader, but the changing external environment poses new challenges to emerging market and developing economies, says the IMF’s latest World Economic Outlook (WEO). The IMF forecasts global growth to average 3.6 percent in 2014―up from 3 percent in 2013―and to rise to 3.9 percent in 2015.
The strengthening of the recovery from the recession in the advanced economies is a positive trend, according to IMF staff. But the latest WEO also emphasizes that “growth remains subpar and uneven across the globe.”
The US, Euro Area and Japan all expect positive growth (the US near 3%). Emerging economies will contribute to more than 2/3’s of global growth, and their growth is expected to increase from 4.7 percent in 2013 to 4.9 percent in 2014. China continues to lead the way with a projected growth of 7.5 percent (see IMF chart).
What does this mean for US manufacturers? Perhaps in developing a 2-5 year marketing plan, it would be prudent to consider targeting higher growth markets for exports. As overall growth in the Euro Area continues to remain rather anemic, starting now towards diversifying sales channels to include higher growth international markets may position manufacturers to take advantage of increasingly higher demand from abroad.