Data for the past couple of months suggest that GDP growth has picked up slightly in the fourth quarter. Nevertheless, growth still remains weak by historical standards. Subdued global demand will continue to weigh on Asia next year, with most countries likely to record another year of below-trend growth. A combination of weak economic growth and falling global commodity prices should keep inflation low in 2013, opening the door to further rate cuts. Currencies and equity markets have generally strengthened over the past month. However, both currencies and equities are likely to fall next year if global risk aversion returns, as we expect.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services