Japan's Cabinet Office predicted in a report Tuesday the global economy is set to grow at the 2 percent level in 2010.
The report states that this is the first time the world economy has seen an upward trend in two years and that economic growth, particularly in China, but also other Asian countries were driving the global trend.
The Cabinet's 'Trends in the world economy' report, reveled that China's large-scale economic stimulus measures will continue to be implemented, enabling the country to attain smooth growth led by domestic demand.
The United States is expected to post real gross domestic product (GDP) growth at the 1 percent level in 2010, the report said, citing public works projects as the impetus for the growth.
Although the U.S. unemployment rate shot up to 10.2 percent in October, the highest in more than 26 years, Japan's Cabinet Office described the
expected U.S. economic growth in 2010 as one with "recovery without employment."
Japan's Cabinet Office report cites that the labor market in the U.S. will worsen further into next year, with the rate of unemployment rising to
10.8 percent -- levels not seen since the postwar period in the U.S.. As for European economies the report indicated that real GDP in the 'eurozone' will rise less than 1 percent in 2010.
The Cabinet Office said the debt unrest in Dubai may put downward pressure on the real economy of Europe, explaining that many loans to the
struggling Dubai World conglomerate are held by British financial institutions.
For the rest of 2009, according to the report, the global economy is certain to see negative growth.