The wealthy economies are in for a tough year

THE outlook for economic growth in the West is bleak, according to the IMF’s latest World Economic Outlook, released on April 16th. Worldwide output is expected to grow at just over 3% in 2013, but rich countries will lag behind, expanding at 1.2%. Growth in emerging markets, by contrast, will exceed 5%, with Asia and sub-Saharan Africa motoring along at 7% and 5.6% respectively. The IMF's report praises euro-area policymakers for avoiding a break-up, but notes that parts of the currency union are still uncompetitive and constrained by austerity. The failure of cash injections to trickle down to households and businesses is dampening prospects, too. The American economy, though buoyed by recovering housing and credit markets, must endure the effects of the budget sequester.