Fueled by government investments and strong domestic consumption, Asia-Pacific economies continue to grow robustly. Growth will be challenging in 2012 amid the weak global economic environment, but the region’s resiliency should enable it to weather any slowdown.
A year-end improvement in economic indicators gives rise to hope that sustainable economic expansion will finally take root. However, markets
remain wary of another shock caused by the unresolved sovereign debt crisis in Europe and political infighting in the build-up to the 2012 election.
Latin America was the recipient of strong capital inflows in the first half of 2011, but investors viewed the region with more caution in the second half. That led to the depreciation of currencies and prompted some countries to relax monetary policy.
The near-term outlook for European economic growth has deteriorated as governments struggle to reassure markets that they have a credible and long-term solution to the sovereign debt crisis.
The near-term outlook for European economic growth has deteriorated as governments struggle to reassure markets that they have a credible and long-term solution to the sovereign debt crisis.