Global economic growth expected to be 2.6%

The world economy will grow by 2.6 percent this year, much the same pace as in 2012, according to a report released earlier this month by an influential Canadian think-tank. In a quarterly published economic outlook of the world's major economies, the Conference Board of Canada said China and Brazil will continue to shine in performance, but Europe and Japan will lose glamor, and growth in the United States will remain unstable due to Capitol Hill's escalating political confrontations. The report expected the real GDP in the eurozone to contract by 0.1 percent this year, the second consecutive year of decline. Due to fiscal austerity, recession will persist this year in many European countries, including Italy, Spain, and Greece. "The seemingly endless economic problems in Europe have dragged down the entire world economy, primarily through capital and financial markets," said Kip Beckman, principal economist at the think-tank, adding that the lowering export demand from many eurozone countries would potentially block growth of emerging economies. The report forecast the U.S. growth rate as 2.3 percent this year, although a political agreement to tackle the country's fiscal challenges would produce a higher growth rate. Excluding slumping Japan, which finds itself in another recession - the fifth in the last 15 years, real GDP in the Asia-Pacific region will expand by 6.6 percent, up from 6 percent last year, according to the report. "Fortunately, the outlook for emerging markets has improved in early 2013, which will enable the global economy to at least continue to expand, albeit at a tepid pace," Beckman said. Latin America will benefit from mining investment and a rebound in economic growth in Brazil, whose economy is expected to expand by 3.4 percent this year, due in part to infrastructure construction of the 2014 World Cup of soccer, the report predicted.