The latest economic forecast from the World Bank available here paints a pretty gloomy outlook for 2012.
Basically what they are saying is that the Eurozone issues could spark a repeat of the 2008 credit crisis. Economic growth has been massively revised downwards for 2012 and they are saying that the Eurozone is already in a recession.
Personally I have my doubts as to whether we will see a return to the same conditions sparked by the fall of Lehman Brothers. Back in 2008, nobody saw it coming. This time, people will have had plenty of forewarning. Major crises are usually sparked by something unexpected happening, if Greece defaults, is that really that unexpected?
Tags: World bank 2012 forecast, World economy
