In 2012, the economy of the world will face quite a bit of turbulence while the global recession continues to affect millions of people.
Europe is currently under a massive debt crisis and has recently been forced to continue to bail out countries such as Italy and Greece to enable them to make their payments on time. As part of the bailouts, these countries are being forced to implement austerity measures to gain better control on their debt problem. Austerity measures very likely will increase prices and increase unemployment throughout those countries that are required to undertake them, threatening a double-dip recession in the European Union for 2012 and beyond.
The United States, one of the last remaining superpowers in the world, is also facing a lot of debt and this could affect the entire world economy for the next year. Over the first few months of the year, the unemployment rate has started to drop and many jobs are being created. This is very promising news for the global economy. However, efforts may be made to reduce the debt that may threaten this growth. Signs have not been all positive. The housing market continues to ail, which also has the possibility to overshadow any gains made by improved unemployment numbers.
2012 will very likely be another good year for many emerging economies, in Asia, Africa, and the Middle East, who have shown massive growth over the past years as globalization opens them up further to new manufacturing and service opportunities. These jobs have enabled the economies of these countries to obtain greater purchasing power, improving the economies of the region dramatically.