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Monday, 2 January 2012

Goldman picks out the five critical questions that need to be considered in the context of 2012's economic outlook

With stock markets closed today, Goldman is trying to answer a few questions for upcoming year:
- will US growth pick up to an abovetrend pace?
- how much will the European crisis - the biggest downside risk - subtract from US growth?
-  will the US housing market bottom in 2012?
- will inflation be too high or too low by late 2012, relative to the Fed’s target?
- any chance of QE in new year?

In all their discussions the effect of "spillover" from Eurozone is profound for US economy.

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