Consumer spending to drive up growth 4%
The global recovery is becoming more resilient as western consumers reach for their pockets, according to a new report published by Danske Bank.
It said the global economy moved up a gear towards the end of 2013 as Western consumers finally increased spending.
In its latest global report, The Big Picture, Danske Bank forecasts the global economy to grow by 3.9% in 2014 and by just over 4% in 2015.
The stronger momentum driving growth last year is expected to stay intact as job growth, lower inflation, wealth gains from improving stock markets and less uncertainty prevail.
Although emerging markets are now the weak link in the global chain, they are unlikely to derail the global economy. Since the countries at risk are mostly small in the scheme of things, the financial and trade links are not huge.
Danske Bank chief economist Angela McGowan said it was good news for Northern Ireland
"The global recovery is currently being driven by western consumers who are much more confident about reaching for their wallets," she said.
"This positive development in consumer demand is likely to spur more investment as well, as the corporate sector develops more faith in the recovery and earnings growth picks up.
"Fiscal pressures are expected to ease in 2014 and the fact that the euro area and the US were able to recover last year when fiscal policy was so tight is a sign of strong underlying growth dynamics," said Ms McGowan.