By Chris Iggo
The world economy is likely to continue to offer a benign backdrop to global markets in 2007. Indeed, there is a strong consensus in financial markets that this year will see a year of solid, if unspectacular, economic growth with fewer concerns about inflation and a peak in the global interest rate cycle. The US economy will continue to expand, albeit at a slower pace in the first half of this year, while momentum in Europe and Asia is expected to remain strong.