Economist Roubini who is famous for accurate bearish calls is bullish on the World Economy

Economist Nouriel Roubini, renowned for his foretelling of doom and gloom in financial markets, has turned bullish in his 2014 outlook, expecting economic performance to “pick up modestly” in both advanced economies and emerging markets.

Threats of a euro zone implosion, another U.S. government partial shutdown, a debt-ceiling fight, a hard landing in China, or a war between Israel and Iran will be far more subdued, he said. Most advanced economies will still fail to reach true growth potential in 2014, he said, but explained that the positives for the U.S. economy included the shale-energy revolution, improvement in the labor and housing markets, and the flow of manufacturing back to the country.

He also expects emerging markets (EMs) to perform well next year. A fall in commodity prices in 2013 and fears over the “tapering” of U.S. Federal Reserve stimulus hit these economies hard, but Roubini expects them to grow faster this year – closer to 5 percent.

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