Economic update October 2012
There are “big question marks” over what lies in wait for the global economy next year, says ING Bank head of macro and consumer economics Maarten Leen in the latest economic update video for eZonomics.
As we enter the last quarter of this year, Leen looks ahead to 2013 and the challenges facing three major economies.
Fiscal cliff? Stimulus?
In the United States, there is the prospect of a “fiscal cliff” – or the combination of tax increases and government spending cuts.
In the eurozone, short-term economic indicators are “not going in the right direction” and an uncertain political environment looks set to raise questions for quite some time.
In China, there are questions about when the government will start to stimulate growth again – possibly not until a new administration takes office in March next year.
ING economics department forecasts 1.8% gross domestic product (GDP) for the US for 2013. For the Eurozone, it forecasts flat GDP (0.0%) and 9.0% for China.
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