Y2012 World economic overview

It is projected that in Y2012 all major world economies growth will slow down, with Japan as exception due to its -0,9% shrinking in 2011 due to tsunami effect and is projected to recover with +1,7% growth. US look quit strong in world wide growth slowdown context with its +1,8% same growth as in 2011. It is possible that US will show even stronger growth as US is showing good results. In 2012 EU will suffer a depression of -0,5%. Germany and UK will show minimal growth 0,3-0,6% which signals bad news for European home-market companies. China growth will continue to decline to ~8% according to projected “soft landing” scenario as China shows clear signals of overheating.

It is expected that material price will decline in 2012. Oil should decrease by 5% due to economic slowdown and other non fuel commodities price should decrease even further around -14%. Huge increase in commodity price was driven by cheap money which was putted into the market to recover from 2008 financial crisis. This is bad news for energy market companies.

Source: World economic outlook by International monetary fund

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