Global economy 2011: Continued recovery with clear risks

Munich Re’s outlook for the global economy presents a mixed picture. Economic recovery will continue in 2011 but there are major uncertainties involved. The main drivers of economic growth are the emerging markets. Inflation will remain moderate throughout the world. The mood on the capital market is positive, albeit with heightened political risks.

Munich. Munich Re’s economic experts expect economic recovery to continue in 2011. However, Munich Re Economic Research predicts that growth will be weaker than in 2010. In spite of the economic recovery and the continued expansive monetary policy conducted by central banks, economists do not expect any significant increase in inflation. However, there are substantial risks involved. These include a deterioration in the euro crisis, much weaker economic growth in the USA and overheating in the emerging markets. Opportunities for greater growth lie primarily in stronger economic recovery in the industrialised countries. “All in all, I think there is relatively little chance of a major improvement in our predicted scenario. The risks that could bring weaker development than we project far outweigh the opportunities”, commented Dr. Michael Meinhart, head of Munich Re Economic Research.

Munich Re clients can access the full Economic Outlook with details of the economic summary on our client portal connect.munichre.