Economists at Capital Economics Give Bumpy Predictions for 2012

Economist from Capital Economics recently gave bumpy outlook of 2012 and gave some predictions which every investor should look out for. As per their statement, emerging economies will face sluggish growth in 2012.

It is expected that major portion of euro zone will be victim of deep recession while interest rates in Asia will further decline than the market expectations. Chinese government is expected to announce another stimulus program to boost up the economy and chances are that will be able to sustain the growth rate above 8 percent in the year 2012.

Some of the analysts also foresee yuan’s appreciation versus the greenback, however incase of failure of euro zone stability measures the appreciation could slow down.

It is also expected that Latin America will face sluggish growth rate and will also face decline in interest rates more than market expectations.

It is forecasted that equities and currencies of emerging markets will remain under pressure in 2012, however will perform in 2013.

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Alan Smalling

About Alan Smalling

Alan is the latest addition to our news and development team. He has worked with Pete previously on other financial websites. When we can keep him at low altitude, his contributions will mainly be focused on company news and new product launches.

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