Economic Survey 1-2012

Whereas global economic growth picked up appreciably in 2010, developments in 2011 were far less positive. The growth rate in both the OECD area and a number of emerging economies fell last year, and appears likely to continue falling in 2012. The euro area bears the marks of the government debt crisis, and the GDP level is expected to fall in 2012 as a result of fiscal policy tightening. Countries in southern Europe are struggling most, but growth is also expected to be moderate in Germany, France and the UK in the near term. Nor were developments in the USA encouraging in 2011, but GDP growth picked up markedly towards the end of the year. Growth in manufacturing output and international trade has largely come to a halt, limiting the growth opportunities of countries that need increased exports to ease the government financial situation.