Despite heightened security threats and other geo-political tensions, the global recovery remains on course according to a report released today by Scotia Economics.

The report summarizes current trends, while highlighting key uncertainties affecting the global recovery.

“A more synchronized economic expansion is taking hold as Japan joins the United States and China in providing the major impetus for international economic expansion,” said Pablo Bréard, VP, international research, Scotia Economics, in a news release.

This is seen as evidence the expansion has spread and will likely be more sustainable.

As well, most regions are experiencing a boost from key drivers. “Robust US economic momentum is sending positive waves throughout the Americas,” said Bréard, “while China is leading growth in Asia.” Growth in China is helping to firm up the economic recovery in Japan.

Europe, on the other hand, continues to grow below its potential. “With core countries such as Germany and France suspending their commitment to budget deficit reduction, regional fiscal performance is weak,” Bréard said.

The news is not all bad, however. Countries such as Hungary and Poland have benefited from market goodwill as they are on the verge of admission to the European Union. Russia has received strong support from buoyant energy markets.

Scotiabank economists believe that political uncertainty will continue to buffet financial and energy markets. As well, a potential increase in U.S. long-term interest rates may affect developing countries with heavy debt burdens.

Scotiabank says that the longevity of the global recovery is threatened by trade and fiscal imbalances, augmented by a prolonged period of weak job creation in Europe and Japan. Another issue of note is heightened “protectionist rumblings” in the United States in the lead-up to the presidential election.