Emerging markets will soon make up 50% of world economy

The global economy is recovering but won't take place in the same way it has in the past, experts said Monday.

Emerging countries led by Asia, Africa and Latin America will soon control half of the world economy, up from a third currently, Scotiabank chief economist Warren Jestin told the Conference of Montreal.

Jestin says U.S. is slowly recovering at about two per cent growth, but European won't move much beyond recession any time soon.

He told the economic conference that Europe faces high unemployment and growth that will at best reach one per cent over the next five years.

Jestin said growth rates in the developing world will be two to three times the level of the developed world and will be the global economic engine by 2020.

The winners will be businesses that are less focused on the United States and Europe, he said.

"It is a different type of competitive environment, but is one that is very exciting and will probably be very positive for Canada going forward," Jestin said.

Barclays chairman David Walker said banks bear a major responsibility for the financial crisis.

"Knocking the banks and bankers has become a political and media industry," he said.

But he also decried the short-term thinking by government and companies focused on quarterly results.

"I'm convinced that there's need for much greater awareness of the affliction of an undue short term focus or myopia in our capitalist democratic societies."