iCharts Discussions

[marne.vivek]

This will hardly be a surprise to anyone with 3 neurons to rub across their frontal lobe, but at least it is now official.

WORLD BANK CUTS GLOBAL GROWTH OUTLOOK, SEES EURO-AREA RECESSION

Bloomberg, which just released an embargoed summary of the World Bank action, summarizes it all.

World Bank cuts global growth forecast by most in 3 yrs as euro area recession threatens to exacerbate slowdown in emerging markets, World Bank says in Global Economic Prospects report.
Sees world economic growth of 2.5%, down from June est. of 3.6%
Sees euro area GDP contracting 0.3% in 2012, compared with pvs est. of 1.8% growth
World Bank estimates euro area entered recession in 4Q
U.S. outlook cut to +2.2% from +2.9%
Japan forecast cut to 1.9% growth from 2.6%
China’s GDP growth will slow to 8.4%, unchanged from interim revised projection released in Nov.
India forecast cut to 6.5% from 8.4%

And the punchline:
World Bank urges developing economies to “prepare for the worst” as it sees risk for European turmoil to turn into global financial crisis reminiscent of 2008
Even achieving much weaker outcomes is very uncertain



Source: Bloomberg / ZH

[vinay28]

this is only the economic aspect vivek. no one wants to admit the possibility of a social unrest that could be much more widespread if important european countries like spain and italy fail along with greece, hungary, portugal, etc. then it will be "haves vs. have nots" and the first to suffer will be the "foreigners" in those countries. this will seriously affect european operations of all foreign firms in europe.