Global growth will improve only if already agreed or still pending economic policy measures are fully implemented in time. The overall weakening of the global economy in 2012 means that the role of economic policy measures is crucial in order to achieve a slight improvement in growth in 2013.
The eurozone has not yet resolved its debt and institutional crisis, the main downward risk to our global scenario. New measures announced could help to improve the situation but speedy and effective implementation is needed.
Financial markets respond to global liquidity and the euro crisis. The sharp fall in interest rates in emerging markets are reliant on low rates for risk-free assets and on plentiful global liquidity supply.