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The global economic outlook has clearly darkened over the last six months. While global GDP growth forecasts remain in positive territory, boosted by Asia, many Western countries have come under even further pressure largely due to the intensifying eurozone crisis. Unsurprisingly, the largest downgrades have been to the eurozone and UK outlooks, which are now expected to contract over the course of 2012. As suggested by the sharp level of adjustments to previous forecasts, there is still considerable uncertainty about the likely path of the global economy over the next 12-24 months. This is unlikely to settle down until further clarity regarding the eurozone crisis is achieved.
Source : UBS AG