Almost all countries globally are experiencing bad effects from the global economic crisis. We’ve all witnessed how the whole world struggled with both the political and economic mayhem brought about. Over the past year, the economic developments have been interrupted by natural disasters such as the Tsunamis in Japan, revolts in the Middle East, and the Euro-zone debt. All these and many more factors have contributed to the slowdown in the improvement of the economy, as prices of commodities remain unpredictable and supply pathways have been disrupted. Looking forward to the end of 2012 and beyond, prospects for the global economy aren’t looking much better. Although the outlook is clear, the global economy still probably faces a very rocky road to recovery.
Despite the slowdown in the economy in the previous year, the past few months of 2012 have shown some positive results. However, there is still a heightened risk of downturn. One of the biggest threats to the economy is the European-sovereign debt. Over the next decade, it is expected that the global growth will slow down to an average of 3% annually. For 2012, the expected global economy growth is 3.5% and it is also expected to increase to 3.6% from 2013 to 2016.