The National Institute of Economic and Social Research (NIESR) has revealed its latest global economic forecast and it predicts the world economy will grow by 3.3 per cent this year.
NIESR's report also stated there will be world economy growth of 3.7 per cent in 2014, with the US continuing to lag behind the rest of the world as it will grow just over two per cent each year.
It was pointed out by the body that the Euro Area remains in recession and NIESR forecasts that it will grow only about one per cent next year, while some upward revisions – most notably for Japan – have been offset by other downward revisions.
"This outlook reflects, especially in the advanced economies, weak demand resulting from several factors, especially continuing fiscal consolidation and deleveraging by private sectors, impaired credit intermediation in many cases and significant policy uncertainties," said the NIESR in a statement.
It added the ongoing slump in the eurozone is continuing to be a concern, with the region predicted to remain in recession in 2013.
The UK's economy grew by 0.3 per cent in the first quarter, meaning the country avoided slipping into a triple-dip recession.
But the NIESR predicts the UK's economy will be 0.9 per cent larger in 2013 and grow by a further 1.5 per cent next year.
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