The global economy is slowing down. Global growth will only rebound in the second half of 2012, led by the resurgence of emerging economies.
Risks to the global outlook are still strongly tilted to the downside, as the European sovereign, financial and fiscal crisis continues.
This crisis has pushed Europe into recession. Successive EU summits since October and ECB’s actions have just bought some time, but major advances have yet to come.
Emerging economies are heading for a soft landing, buttressed by strong domestic demand. Growth is likely to rebound at end-2012, as policies become more growthsupportive.