In the December economic update video for eZonomics, ING senior economist Teunis Brosens describes 2012 as “weak” but says conditions could start to brighten by the second half of next year.
Brosens says chances are increasing that the much-discussed fiscal cliff will materialise in the United States. But it might not be as bad as earlier predictions.
“If a solution is found early in the New Year, the effects may remain limited to a smaller, ‘fiscal pot-hole’, with growth rebounding in the second half of the year,” says Brosens.
Fiscal cliff refers to an economic challenge faced in the United States at the end of 2012 when temporary tax cuts are due to expire at the same time as government spending is scheduled to be cut.
Eurozone forecast to grow again
Brosens highlights several challenges facing the Eurozone – including situations in Greece and Spain.
But he says: “We expect the Eurozone as a whole to return to growth during 2013, led by improvements in export markets.”