The world economy faces the risk of a sharp slowdown in 2012 with governments hard-pressed to spur growth, a United Nations report has said. The report, ‘World Economic Situation and Prospects 2011’, published on Friday said global growth could fall from 3.6 per cent this year to less than 2 per cent in 2012.
Developed countries might again lapse into recession as policymakers are unable to match the increases in government spending and liquidity two years earlier.