Dun & Bradstreet predicts sluggish recovery in 2010

The pace of the global recovery is likely to remain sluggish through 2010 as high unemployment, stimulus withdrawals and lower bank lending weaken growth, according to a report by Dunn & Bradstreet.

According to Dunn & Bradstreet's 2010 Economic and Risk Outlook Report the prospects of subdued growth were becoming increasingly apparent even as expansion happens at a healthy pace experienced on a global scale at the beginning of 2010.

According to Damian Karmelich, Dunn & Bradstreet director of corporate affairs, 2010 would prove to be a more promising year for many economies than 2009, but it would still be a challenging period.

He said that government stimulus packages underpinned much of the growth recorded last year but with these packages set to be unwound in 2010, private demand would need to be generated if economies were to continue on their current growth.

''Government's and firms need to be aware of the risks which could significantly disrupt the return to solid economic growth and ensure they are prepared to manage them effectively."

The recovery in the US is expected remain slow. A variety of factors including unemployment and the expiry of stimulus would also lead to a further slowdown in growth in 2010.