The global economy is growing, but remains "in recovery," with a period of slow and fitful growth ahead for developed nations while emerging economies remain relatively strong, suggested Rick Lacaille, global chief investment officer for State Street Global Advisors.

"We took the view [in early ‘09] that there was sufficient stimulus that we could avoid the double dip," said Lacaille at a recent talk to reporters and analysts at the investment firm’s Boston headquarters, and subsequent events have borne that out. "We’re still in a mode of recovery, definitely, from the global financial crisis…but we are still expecting growth."

But there are a number of downside risks which could further hamper growth, Lacaille suggested, including increasing austerity by European governments, Chinese efforts to curtail inflation having a cooling effect on its economy and further political turmoil in the Middle East sending energy prices spiking.

Lacaille also pointed to a divergence in opinion between Wall Street analysts and actual company managers which may portend a period of volatility in the markets when second quarter earnings results are announced in a few weeks time.

Analysts had been bullish on stocks early in year, though natural disasters in Japan and elsewhere and political turmoil in the Middle East which have affected the world economy have moderated their expectations somewhat. But Lacaille pointed out that even in the first quarter. company managers were already predicting lower growth for their firms in public filings than analysts projected. If results come in much lower than expected it could cause strong dips and swings in the markets over the next few weeks as traders reassess corporate prospects.

"The macro data didn’t always look great during the second quarter, and you have to expect that that’s going to feed through to company earnings," he said. "But if you looked at what’s already been baked in the cake, in terms of management guidance, it was already not staggeringly positive. I’m not predicting that they’re going to be terrible results, but when they’re revealed and reflect these macro-economic conditions that have already been seen…there’s an adjustment that will need to be made."