Global outlook: Are regional challenges escalating into a global risk?

12/10/2012

Cliff Waldman, senior economist
As the protracted saga of world economic troubles that began in 2007 persists, there is growing concern that a wide range of regional economic vulnerabilities could morph into a global risk, which might be difficult to control with policy ammunition so low in many key countries. U.S. economic sluggishness, a renewed recession in the unstable eurozone and sharp slowdowns in the growth rates of major developing economies have created a risk-averse world business climate, with negative implications for capital investment activity in the developed and developing blocs. Economic Outlook

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