Country risk poll March 2007: Global economy deals with worries amidst the prosperity

Event risk remains the biggest threat to the world’s economic prospects. But globalization means that, although economic imbalances might persist, the likelihood of a major worldwide correction is low.

Research by Paul Pedzinski

For historical country risk data please visit the Euromoney Country risk website

Country risk methodology

THE GLOBAL ECONOMY has been in a sweet spot in recent years, and prospects for 2007 remain favourable. World GDP is on course to post its fourth consecutive year of roughly 5% real growth, the fastest in several decades. Globalization, technological innovation and adoption, and economic reforms are enabling strong growth with sustained low inflation. Combined with abundant liquidity and what are by historical standards low interest rates, this positive macroeconomic backdrop has boosted global asset prices.

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