China's Institute of World Economy and Politics has turned pessimistic on the world's economy. And the institute's analysts believe that the U.S. fiscal cliff problem could cause a sharp recession that would affect the balance of the world:
The academy's latest report, The World Economy Analysis and Forecast, put global growth for 2013 at 3.5 percent.
The forecast by major international institutions, such as the World Bank, International Monetary Fund, and the United Nations, put global growth rates between 3.6 and 4 percent in 2013.
Zhang said the forecast was due to concerns over the "fiscal cliff" in the US, the eurozone crisis and growing trade protectionism.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, China, Economy, International Markets