The weak job and housing markets of the US economy point to a disappointing economic recovery so far, but some positive signs remain, according to Deloitte Research’s latest Global Economic Outlook.

However, Deloitte believes the US economy will likely continue to grow and avoid a double-dip.

Deloitte’s report points out that although China continues to grow rapidly, several factors could affect the sustainability of this growth, including consumer price inflation, property prices, labour unrest, and exchange rate policy.

Brazil is experiencing strong consumer-led economic growth, although inflation is higher than desired. In the long term, Brazil’s fortunes will likely depend on a mix of good policy and a strong global economy.

The recovery in Europe is on track. Economic activity has rebounded faster than expected, spurred on by a weaker currency and fast-growing external demand. Against international pressure to continue stimulating domestic demand, politicians are working to bring spending under control, which should help the Eurozone sustain growth in the long-term.

In Russia, economic activity has picked up in recent months, fuelled by external demand for commodity exports and a recovery in domestic demand. However, Russia’s reliance on the energy sector remains a key macroeconomic risk, weighing on the country’s long-term growth prospects.

Japan’s economy is advancing faster than anticipated, with this improvement triggering an upward revision of growth forecasts. However, Japan’s continuing dependence on exports and weak domestic demand means that growth at current levels is likely not sustainable.

The United Kingdom is switching from a period of growth driven by government and the consumer, to one led by exports, capital spending, and industrial output. Fiscal tightening is likely to slow the recovery, at least in the short term. However, a more aggressive plan for fiscal consolidation has helped to boost the UK’s credibility with bond investors and the ratings agencies. The most likely outlook remains a sluggish and erratic, but continuing, recovery.

Higher than anticipated growth in the manufacturing, mining, and agricultural sectors heightened the euphoria around India’s resilience against the global economic downturn. Much of India’s near-term economic fortunes will depend on the monsoons. Less rainfall than expected would negatively impact the agricultural sector, which accounts for 15 per cent of the country’s national income, and lead to higher inflation.

Ira Kalish, director of Global Economics, Deloitte Research, part of Deloitte Services LP in the United States said: “A global economic recovery continues to advance, but the strength of this growth is uncertain in the world’s biggest markets: the United States, Europe and China. While there have been a number of positive indications that markets worldwide are growing, until these largest economies attain sustainable growth, the strength and stamina of the global recovery will remain questionable.”