Europe will not be centre stage in 2013

Emerging markets are growing faster than analysts think, though Europe and US may taper their impact, writes Jim O’Neill

NOW that the leadership issues in the United States and China have been settled, we can finally frame the economic outlook for 2013 with the knowledge of who will be pulling the policy levers in the world’s two biggest economies. So, what will they do — and, perhaps more important, what will economic forces do to them?

For the US, the turmoil over the fiscal cliff will cause recurring challenges and uncertainty in the markets. However, despite this and associated growth disappointments, 2013 will be a stronger year for the global economy than many people expect.