"CEO expectations for both investment and growth remain well below the potential of the U.S. economy and below what we should be experiencing at this stage of a recovery," said Randall Stephenson, Business Roundtable's chairman and AT&T's chairman and CEO.

But in a positive sign, the survey's composite index of CEO outlook for the economy rose during the quarter. The index, which measures expectations for sales, capital spending and employment over the next six months, now stands at 95.4—up from the first quarter's 92.1 and the average level of 80.1.

While the expectations for capital expenditures fell, the outlook for sales and hiring rose moderately.

About 43% of chiefs plan to add employees in the U.S. while roughly seven out of 10 forecast sales would rise over the next six months.

The survey consisted of responses from 131 CEOs.

Columbia

Colombia’s economy grew at the fastest pace in more than two years in the first quarter, beating all analysts’ forecasts, after a surge in government spending ahead of President Manuel Santos’ re-election. Bond fell on expectations of higher interest rates.

Gross domestic product grew 6.4% from the year earlier, the national statistics agency said, compared with 4.9% in the previous three months. Growth was faster than forecast by all 27 analysts surveyed by Bloomberg. GDP grew 2.3% from the previous quarter.

The jump in growth means that the central bank may step up the pace of interest rate increases to prevent the economy from overheating, said Daniel Velandia, the head analyst at Credicorp’s Colombia unit. Colombia’s growth outstripped that in Peru, where GDP expanded 4.8% in the first quarter, Chile, where it was 2.6%, and Brazil, 1.9%.

“Internal demand has shown a very good performance, particularly private consumption and investment,” Velandia said in a phone interview. “This is generating a lot of optimism.”

The central bank will raise its policy rate half a point to 4.25% tomorrow, Velandia said, changing his previous forecast of a quarter point increase. Before the GDP report was published, 27 of 28 analysts surveyed by Bloomberg had forecast a quarter point increase, while one predicted no change.

Yields on peso bonds due October 2015 rose 5 basis points, or 0.5 percentage point, to 5.03 percent at 9:44 a.m. in Bogota as traders increased bets on interest rate rises

In the minutes to their May board meeting, policy makers said “the gradual withdrawal of monetary stimulus” was desirable as growth takes the economy closer to its full capacity and inflation accelerates towards its 3% target.

Public works spending leaped 24.8% in the first quarter from a year earlier, while coffee output rose 14.9%, the statistics agency said.

“There are a lot of things going in the right direction,” said Ricardo Hausmann, a former Venezuelan planning minister who is now economics professor at Harvard University in Cambridge, Massachusetts. “In general, the world is decelerating and emerging markets are decelerating this year. Colombia is accelerating.”

The oil industry, which accounts for half of Colombia’s export revenue, has helped shield the nation from the slump in metals prices which has hit Chile and Peru, Hausmann said in a phone interview.

Copper, which accounts for more than half of Chile’s exports and a quarter of Peru’s, has fallen 10% this year, while crude prices have risen 7%.

The national jobless rate fell to 9.2% in April, from 10.7% a year earlier. Annual inflation accelerated to 2.93% last month, after touching a six-decade low in November.

President Juan Manuel Santos, who won a second four-year term in June 15 elections, has said repeatedly that Colombia can grow at 6.5% or 7% per year if the government signs a peace deal with Marxist guerrillas and overhauls its highway network.

Government negotiators have held talks since 2012 with representatives of the Revolutionary Armed Forces of Colombia, or FARC, in Havana, in a bid to end the 50-year conflict.

ASIA

China

Nearly every story about China’s extraordinary growth over the past 30 years asserts two things as a given:

a. China has grown about 10% a year for 30 years, and

b. China’s long-term growth record in unsurpassed in modern history.

A new report by the Conference Board says both of those assertions may be untrue.

According to the report, written by economist Harry X. Wu, a senior advisor to the New York-based business research group, China’s economy grew at 7.2% a year between 1978 and 2012 — a rate far lower than what Beijing claims and nowhere near 10%. And looking at a number of Asian economies over a roughly two-decade period during which such countries quadrupled their per-capita GDP, Mr. Wu concludes that China isn’t the growth champ. Japan is, followed by Taiwan.

This isn’t just a question of bragging rights, writes Mr. Wu. Businesses base their investment plans on GDP growth, so accuracy is important, especially during down times. “When the economy is, in reality, slowing down or struggling, then the impacts of inaccuracy are farther reaching, potentially undermining efficacy in business, policy and household planning both inside and outside of China,” he writes.

Trying to poke holes in China’s GDP record is a pastime for a number of economists. As evidence, many point to Chinese Premier Li Keqiang’s statement in 2007 that GDP is a “man-made and therefore unreliable” statistic, as he told the U.S. ambassador at the time.

Mr. Li, who was then Communist Party chief of Liaoning province, said he looked at stats on electricity, rail cargo and loans to get a better gauge of economic activity, according to a copy of the ambassador’s memo, which was made public by WikiLeaks.

Like a number of economists, Mr. Wu argues that China overstates productivity growth and underestimates inflation, which tends to make inflation-adjusted GDP numbers –- the ones that get highlighted every quarter — higher than they otherwise would be. He also suggests that politics plays a big role, particularly the desire of local officials to exceed GDP targets, which have long been an important way to boost official promotion chances in China. (Now, those incentives may be changing: China’s leaders say that in addition to GDP growth, local officials will be judged on other measures as well, including environmental clean-up efforts.)

What sets apart the Conference Board report is the length of time that Mr. Wu examines, which spans a number of rough economic patches for China. A great deal of the difference between the Conference Board data and official data reflects the years when China hit rough spots. In 2008, the year the U.S. financial crisis spread globally, Mr. Wu calculates that China’s economy grew 4.7% compared to China’s reported 9.6%. In 2012, when Europe was battered by recession, he estimates China’s GDP increased just 4.1%, compared to China’s reported 7.7%. The Chinese overestimates, he says, greatly affected the 30-year growth numbers.

China’s statistics bureau didn’t respond to requests for comment.

Mr. Wu argues that China’s numbers especially diverged from reality after the country joined the World Trade Organization in 2001. That was a period, he says, in which “significant overcapacity was built in state-dominated and influence industries,” and localities competed fiercely to be top GDP dog and attract investment.

By contrast, Mr. Wu’s analysis of the 1952-1978 period—the heyday of state planning—doesn’t differ that much from the official GDP numbers.

Even by his numbers, China’s growth was impressive –- 7.2% a year for more than 30 years is a huge accomplishment. But it isn’t out of the ordinary for an Asian powerhouse and is even somewhat less rapid than the growth of Japan, South Korea and Taiwan.

India

After two consecutive years of sub-5% growth, the Indian economy is expected to recover and expand 5.2% in the first quarter of this financial year, according to a Dun & Bradstreet report.

"The fiscal year 2014-15 is expected to start with an optimistic GDP growth of 5.2% in Q1 FY15 as some of the current macroeconomic numbers strengthen hope that the recovery for the Indian economy is under way," Dun & Bradstreet India senior economist Arun Singh said.

India's economy grew 4.7% in 2013-14, following an expansion of 4.5% in 2012-13. In the fourth quarter of 2013-14, growth remained subdued at 4.6%, mainly due to a decline in manufacturing and mining output.

"Two consecutive years of significant slowdown along with a host of domestic unresolved issues has placed a burden on the new government. The upcoming Union Budget would broadly reveal how the new government plans to steer the economy out of the current slowdown," Mr Singh said.

He also said that "currently, India needs a robust fiscal policy to build the framework for a sustainable growth".

"We assume reassessing the quality of expenditure should be a priority along with rebalancing the composition of expenditure with the focus shifting more towards capital expenditure."

According to Dun & Bradstreet, optimism is likely to be boosted with the upcoming industrial production data. The Index of Industrial Production (IIP) is expected to have grown 3-4% during May 2014, it said. In April, the index increased 3.4%.

On prices, the report said both retail and wholesale inflation are likely to edge up as global crude oil prices have shot up due to civil unrest in Iraq.

Inflationary pressures remain high, given the prospect of a sub-normal monsoon this year.

D&B expects headline inflation to remain elevated at 6-6.2% in June 2014. Wholesale prices increased 6.01% in May.

Japan

The Japanese government raised its economic growth reading for the first quarter, saying that capital spending was sharply higher than initially thought.

Gross domestic product increased at an annualized rate of 6.7% in the January to March period from the previous quarter, the Cabinet Office said, revising its initial estimate of a 5.9% expansion. The result, adjusted for price changes, marked the sixth straight quarterly expansion.

The surprise upward revision showed that a consumption splurge ahead of a tax increase in April wasn't the only factor fueling growth in the quarter, as Japan's economy continued to expand under Prime Minister Shinzo Abe's pro-growth policies known as "Abenomics."

Economists polled by The Wall Street Journal and the Nikkei had forecast a downward revision to a 5.5% rise.

Closely watched capital investment—a pillar of domestic demand that drove the first-quarter growth along with consumption—was revised up to a 34.2% increase from a preliminary 21% jump, based on new information obtained since initial GDP estimates were released about a month ago.

The government said this was the strongest growth since the October to December quarter in 2011.

This data underlined the contrasting fortunes of major economies. Over the same quarter, the economy of the 18-nation euro bloc grew less than 1%, hobbled by sluggish demand and very low inflation, while the U.S. economy shrank 1% amid unusually cold weather.

Japan's stellar growth was largely due to a one-time burst of consumer spending in the months leading to a sales tax increase that took effect April 1. After the sales tax rate was raised to 8% from 5%, households took a breather from their spending binge, causing consumption to tumble, while manufacturers cut back on output in anticipation of weaker demand at home, according to recently released data.

Economists expect the economy will contract around 4% in the April to June quarter.

The focus of Japan's policy debate is on how quickly the economy may pull out of the slump, and whether the government and the Bank of Japan 8301.TO +1.38% should further ramp up their stimulus measures to ensure a steady recovery.

Officials have so far ruled out the need of immediate action, saying the pullback in demand has been within their expectations. The central bank has taken heart from signs that businesses have finally started to put some of their huge savings to more productive use, such as investment and research, helping cover some of the slack in consumption.

In estimating GDP, the Cabinet Office also slightly revised higher its reading of private consumption, while it lowered its reading of private inventories and public investment.

New Zealand

Gross domestic product grew 1.1% in the first three months of the year, from a 0.9% pace in the fourth quarter of 2013, according to the central bank's forecast.

EUROPE / AFRICA / MIDDLE EAST

Dubai

Dubai’s economy expanded 4.6% year on year in 2013, up from 4.1% in 2012 according to Dubai Statistics Centre (DSC).

The DSC report showed that the fastest growing sector in Dubai last year was once again hospitality, which recorded 13% growth, the third consecutive year of double-digit growth in this sector.

This was followed by manufacturing sector which grew 8.1% year on year, social and personal services with 6.8% growth and transport, storage and communication that grew 5.6%.

“Although the official growth rate for Dubai was largely in line with our long-standing forecast of 4.5%, recently released 2013 GDP data for Abu Dhabi (5.2%) and the whole of UAE (also at 5.2%), published by Statistics Centre Abu Dhabi and the National Bureau of Statistics respectively, implied that Dubai’s growth should have been of a similar magnitude,” said Khatija Haque, Head of MENA Research at Emirates NBD.

Ireland

GDP will grow by 2% this year and 2.4% next year on the back of rising exports and the first increase in consumer spending since the recession began, according to the EY Economic Eye.

The report expects consumer spending to rise by 1.7% this year, the first expected rise since 2008.

“Ireland is showing the characteristics that are required to put the economy back on a robust footing and this has been recognized by the international financial markets, which have differentiated Ireland from the ‘Club Med’ countries, as illustrated by the recent fall in bond yields,” said Professor Neil Gibson, economic advisory to EY Economic Eye.

“However, & continued recovery is by no means assured, with a number of valid concerns including fragile consumer confidence, continued difficulties in the banking sector and limited private sector lending, potential pent-up repossessions in the housing market and the uneven pace of recovery in the regions outside Dublin.”

Exports are forecast to grow by 3.7% this year following two relatively sluggish years on the back of the patent cliff in the pharmaceutical sector. But the improvement in the UK and US economies are seen underpinning exports this year.

Household incomes and wages have not recovered from the crash, when adjusted for inflation.

Nigeria

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, has said the recent rebasing of the country's gross domestic product (GDP) will support its quest to be among the top 20 nations by 2020.

According to Emefiele, the exercise which placed the size of the Nigerian economy as first in Africa and 26th in the world would also afford the country a more positive sovereign rating by international rating agencies such as the Standard and Poor's, Fitch Ratings, the International Monetary Fund, the World Bank, amongst others.

The central bank governor made this remark in an address presented at an ongoing seminar for financial journalists tagged: "Rebasing of Nigeria's Economy and Implications for Financial System Strategy (FSS) 2020," in Kaduna State.

Emefiele pointed out that rebasing the country's GDP was relevant to building a safe, sound and globally competitive financial system that would propel inclusive growth and development in the economy.

Emefiele, whose speech was read by the Director, Research Department, CBN, Mr. Charles Mordi, added: "It is my resolve to hone the CBN's development finance agenda by targeting employment-generating sectors like agriculture, Small and Medium Enterprises, oil and gas, power and health, to confront the prostate productive segments and solve the embarrassing youth unemployment and widening infrastructure need.

"I also reiterate the pursuit of gradual reduction of interest rates and was unequivocal in my stance against any form of depreciation of the naira, but will ensure exchange rate stability in order to build-up and maintain a healthy external reserves position."

In his presentation titled: "Rebasing/Re-benchmarking of Nigeria's GDP: Issues, Facts and Fiction," the Chief Executive Officer of the National Bureau of Statistics, Dr. Yemi Kale, said the huge size of the GDP does not mean that the country has attained its potential. He however reiterated that the exercise had shown the opportunities in the economy.

Kale, who was represented by his Special Assistant on Macroeconomic Statistics, Mr. Kayode Olaniyan, urged government to develop the financial markets for private sector operators to thrive as well as to support the real sector.

The Chief Executive Officer of the Financial Derivatives Company Limited, Mr. Bismarck Rewane, who was represented by the Head of Research at his organisation, Dr. Afolabi Olowokere, pointed out that the GDP rebasing showed a lot of growth in the service sector, stressing the need for government to develop the manufacturing sector.

Russia

Russia's gross domestic product growth forecast of 0.5% for 2014 may be revised upwards in September due to the slowing pace of a decline in investment, Economy Minister Alexei Ulyukayev said.

"For now our official (forecast) for this year is 0.5%, but most likely we will revise it in September, most likely upwards," Ulyukayev told journalists.

Investment by Russian companies in tangible goods such as plant infrastructure, a major contribution to the country's economic wellbeing, had been falling since last year and plummeted after the West imposed sanctions on Moscow for annexing Ukraine's Crimea region.

There are no figures for investment for May yet, but Ulyukayev said there were signs that the fall had eased. In April, investment was down 2.7% year-on-year.

"There are no concrete figures," Ulyukayev said. "But the dynamics of the decline have flattened. ... We are still in negative territory. From now on (the numbers) should show a growing trend."

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