The United States economy has turned the corner and will grow by 1 per cent this year, according to Lehman Brothers' chief global economist. At the launch of a report entitled 'China: Gigantic Possibilities, Present Realities', John Llewellyn said the negative dynamics in the US economy had been overcome by positive forces. 'The fiscal and monetary policies are the strongest for 30 years. We expect growth in the second quarter and possibly the first quarter,' Mr Llewellyn said. Asked about the yen and whether Washington had given tacit approval to its fall, Paul Sheard, chief economist for Asia, said the currency's depreciation would help Japanese exports but that this would have limited impact, because exports accounted for only 12 per cent of Japanese industrial production. 'The benefits are dwarfed by the magnitude of the domestic problems. Our forecast is that the yen will reach the level of 141-142 to the dollar by the third quarter. 'Policy shifts in Japan may be appreciated . . . and the yen could reach 135 by the end of the year,' Mr Sheard said.