Regional Specialists Review January 2012
Overview: The outlook for growth has improved, even as emerging nations slow, Europe slips into recession and its risk of financial shock remains high. Inflation has rolled over and is headed to 1.5% or below. And U.S. political and fiscal skirmishes seem to have taken a pause.
Risks abound, but we continue to have several driving factors supporting growth. We've seen a meaningful downturn in commodity prices, loose or loosening monetary conditions nearly everywhere (now including many emerging nations), improved conditions surrounding the Arab spring and continued efforts in Europe to gain the advantage over its fiscal problems.