Goldman Sachs is out with its first predictions for how 2012 and 2013 will shape up, and the news isn't all that thrilling. BusinessInsider reports. Led by Francesco Garzarelli in London and Dominic Wilson in New York, the team set out to forecast what markets, currencies, commodities and even central bank policies would be.
Their estimates are not so rosy. Rather, they paint a somber picture of Europe while world GDP growth falls further from earlier estimates.
A. Slow Growth For Two More Years in Developed Economies: The thread holding the global economic picture together will remain one of slow, and in some cases negative, growth. Headwinds from austerity measures which have hit government spending will hit the U.S. and peer nations in Europe..
B. Emerging Markets Will Remain Resilient to the Challenges: Issues that are facing developed nations will not move to emerging markets. Inflation will begin to ease and economic policy will shift further towards prevention of slow growth…
C. Europe's Crisis Will Mar Global Growth: The crisis that has enveloped Europe will not disappear at the turn of the year. Rather, Goldman believes it will continue to hold back global growth. The investment bank is decreasing world GDP forecasts by 20 basis points to 3.2% for 2012
D. Equity Markets Will Have An Extremely Difficult Year: Over the coming three to six months, Goldman economists predict the Tokyo Topix, Stoxx Europe 600 and MSCI AC Asia Pacific Excluding Japan Index to all decline. Europe will be hardest hit
To see all the predictions for the coming year:
http://www.businessinsider.com/goldman-10-things-that-will-happen-in-2012-2011-11
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