(March 13 – 11:10 ET) – In the wake of deterioration in the U.S. economy, the world economy will not match last year’s performance in 2001, but will still show growth, according to The Conference Board of Canada’s latest economic forecast, World Outlook, Winter 2001.

“While real gross domestic product growth in the U.S. will decline this year, the U.S. economy will avoid a recession,” says Kip Beckman, senior research associate at the Conference Board. “Growth in Canada is likely to exceed that recorded in the States.”

The Conference Board forecast points to massive government debt as a cause of economic constraint in Japan. Most Asia-Pacific countries are in relatively good shape to handle the effects of slower growth in the U.S., because their external debt levels have been reduced.

While the Japanese economy is in a stall and the U.S. economy is slowing down, things look relatively good for the European economy. Growth in Europe is likely to equal or exceed U.S. economic growth for the first time in the past few years. Consumer confidence in Europe has not dropped to the same level as it has in the U.S. In addition, the euro will likely improve against the dollar as the year progresses.