Friday, March 9, 2012

Hypo Venture Capital Headlines: Outlook for global economy in 2012

http://www.free-press-release.com/news-hypo-venture-capital-headlines-outlook-for-global-economy-in-2012-1328540186.html

FOR IMMEDIATE RELEASE
new york cityNew YorkUnited States of America (Free-Press-Release.com) February 6, 2012 -- We expect 2012 to be a year of slowing global growth, with wide divergences between regions and countries. Overall global growth will slow from about 3% in 2011 to 2.5% in 2012. For 2013, a modest recovery in global growth is likely.
The Euro-zone sovereign debt crisis will escalate, provoking a sufficiently strong policy response from the European Central Bank (ECB) and creditor governments to prevent Euro-zone disintegration and a string of disorderly sovereign debt defaults. Even so, sovereign spreads will remain unusually wide even at end-2012. The euro area already probably is falling back into recession, with negative quarter-over-quarter growth in fourth quarter of 2011 likely to carry over into 2012. Real GDP in the euro area will drop by at least 1% in 2012.
The United Kingdom is likely to be near recession, and we also look for a marked slowdown in Eastern Europe in 2012. By contrast, modest but sustained growth will occur in the United States in 2012 and beyond, and still relatively strong but slowing growth will take place in 2012 in emerging Asia, Latin America, Africa and the Middle East. In all, there will be sluggish growth in the advanced economies (around 1% yearover-year in 2012), with emerging market growth of about 5% for 2012.
As a result, the extent to which global growth is China-dependent will increase. The lagged effect of past domestic tightening and slowing export growth are likely to cool China’s growth below 9% in 2012. 

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