Description
This article, published on Knowledge@Wharton, from the Wharton School of the University of Pennsylvania, discusses international economic prospects for 2012. It focuses on difficulties in the Eurozone, and high prospects of a recession there — perhaps severe — and the potential spill-over effects this may have in other industrialized countries, especially the United States, as well as in emerging markets, particularly China. The article also expresses concern about the short-term potential impact of austerity programs in debt-laden countries and that, while this might reduce debt as intended, it may also worsen the downturn in the process.