Over the past six months, the consensus economic forecasts for both 2012 and 2013 have been modestly downgraded across the globe as worries over the Euro crisis and the failure (to date) of US policymakers to agree on a fiscal plan continue to adversely impact all regions’ growth. The Eurozone is in recession, with muted economic expansion in the Nordic and Germanic countries being outweighed by the more significant downturns in Greece, Portugal, Italy and Spain. Despite emerging from its double-dip recession in the third quarter, the UK economy is likely to have contracted or flatlined at best for 2012 as a whole. In spite of falling short of anticipations, the US economy and labour market has felt the benefits of further quantitative easing and continued loose fiscal policy. Asia Pacfic growth expectations, although the highest amongst the three major regions, were curtailed too, as weakness in the advanced Western economies affected the region through both trade and financial channels.
Source : PRUPIM