Global Economic Outlook - Q3, 2012

The global economy seems to take two steps forward followed by one or two steps back, and it mostly has to do with Europe. Each time the Eurozone starts to seem more stable, the crisis rears its ugly head again. The result is downward movement of European economic activity and increased uncertainty. Both of these factors, in turn, have a negative impact on growth everywhere else. Today, we are seeing deceleration of growth in most of the world's major economies. We are seeing new policy responses in some markets, changing direction of interest rates and currencies, and a higher degree of uncertainty than at almost any time in recent memory. Once again, we attempt to make sense of a confusing situation.