Ask The Experts: On-Trend Growth Expected For Global Economy
Stephen Halmarick, Head of Investment Markets Research, First State Investments, shares his views on the global economy.
Questions:
What's your view for the global economy in 2012?
- Outlook remains difficult for 2012
- Overall global economic growth to be 3%, close to trend
- Different growth rate across regions; Europe to be the weakest with a possible recession
- US growth to be in the range of 2 to 2.5%
- In developing world especially in Asia, strong growth is expected
What are the catalysts you see driving growth in 2012?
- Growth in Asia to come from easing of policies in the region
- Inflation rates have peaked in many countries in 2011, monetary easing expected in 2012
- Government stimulus plans in countries like China will also support growth
- Picking up of inter-regional trade
What are the risks investors should be aware of?
- Europe remains the primary risk
- Elections in US pose an uncertainty for the US economy
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