Emerging World Rising

LONDON – 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 starters, the US will face recurring challenges with the “fiscal cliff” until financial markets pressure policymakers into more radical deficit reduction. But, despite this and associated growth disappointments, 2013 will be a stronger year for the global economy than many people expect.