NEW YORK, August 3, 2010 /PRNewswire/ --

In the third quarter issue of the Global Economic Outlook, part of the Deloitte 20/20 series (http://www.deloitte.com/2020), Deloitte Research examines the current economic environment and, in particular, the strength and sustainability of growth in the global markets.

Highlights of the Q3 issue:

    
    - Examines the difference of opinion between Europe and U.S. policymakers
      on the role of fiscal policy in the economic recovery and the rate at 
      which deficits should be reduced in order to improve economic 
      performance of the markets.

    - The weak job and housing markets of the U.S. economy point to a
      disappointing economic recovery so far, but some positive signs remain.
      Deloitte Research believes the U.S. economy will likely continue to 
      grow and avoid a double-dip.

    - Although China continues to grow rapidly, several factors could affect
      the sustainability of this growth, including consumer price inflation,
      property prices, labor unrest, and exchange rate policy.

    - Brazil is experiencing strong consumer-led economic growth, although
      inflation is higher than desired. In the long term, Brazil's fortunes 
      will likely depend on a mix of good policy and a strong global economy.

    - The recovery in Europe is on track. Economic activity has rebounded
      faster than expected, spurred on by a weaker currency and fast-growing
      external demand. Against international pressure to continue stimulating
      domestic demand, politicians are working to bring spending under 
      control, which should help the Eurozone sustain growth in the long-
      term.

    - In Russia, economic activity has picked up in recent months, fueled by
      external demand for commodity exports and a recovery in domestic 
      demand. However, Russia's reliance on the energy sector remains a key 
      macroeconomic risk, weighing on the country's long-term growth 
      prospects.

    - Japan's economy is advancing faster than anticipated, with this
      improvement triggering an upward revision of growth forecasts. However,
      Japan's continuing dependence on exports and weak domestic demand 
      means that growth at current levels is likely not sustainable.

    - The United Kingdom is switching from a period of growth driven by
      government and the consumer, to one led by exports, capital spending, 
      and industrial output. Fiscal tightening is likely to slow the 
      recovery, at least in the short term. However, a more aggressive plan 
      for fiscal consolidation has helped to boost the UK's credibility with 
      bond investors and the ratings agencies. The most likely outlook 
      remains a sluggish and erratic, but continuing, recovery.

    - Higher than anticipated growth in the manufacturing, mining, and
      agricultural sectors heightened the euphoria around India's resilience
      against the global economic downturn. Much of India's near-term 
      economic fortunes will depend on the monsoons. Less rainfall than 
      expected would negatively impact the agricultural sector, which 
      accounts for 15 percent of the country's national income, and lead to 
      higher inflation.

QUOTE

Attributed to Ira Kalish, Director of Global Economics, Deloitte Research, part of Deloitte Services LP in the United States

"A global economic recovery continues to advance, but the strength of this growth is uncertain in the world's biggest markets: the United States, Europe, and China. While there have been a number of positive indications that markets worldwide are growing, until these largest economies attain sustainable growth, the strength and stamina of the global recovery will remain questionable."

For additional quotes and to read the full report, please visit http://www.deloitte.com/economicoutlook.

Deloitte Research is a part of Deloitte Services LP in the United States.

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