Introduction: 2012 was, if nothing else, a year of pronounced economic uncertainty for many countries around the world, and for most of them, this trend will linger into 2013.
Eurozone: Concerns about the future of the euro are giving way to uncertainty pertaining to the region’s economic health.
United States: Negative GDP growth in the fourth quarter and the likely outcomes of the fiscal cliff suggest that the US economy will find itself in recessionary territory in early 2013.
China: Economic growth is accelerating in China after slowing down for most of 2012. However, the country will need to navigate significant challenges in order to stay its course.
Japan: Japanese exports have been hampered by a recession in Europe, declining automobile sales, waning government spending, aggressive monetary policy that hasn’t offset the country’s formidable deflationary pressures, and a high-valued yen that continues to compromise the competitiveness of its exports.
India: Growth in India may improve over the next two quarters after experiencing a period of deceleration. However, a burgeoning fiscal deficit, low investments, elevated inflation, and high interest rates are looming over India’s outlook.