Global recovery continues to display signs of weakness. Heightened Eurozone financial market and sovereign distress, stuttering recovery in the U.S. and softer than expected growth in major emerging market economies are the main drivers behind the IMF’s recent adjustment of its forecast for global growth downwards to 3.5% for 2012 and 3.9% for 2013. The two main assumptions that the forecast is founded upon are policy action in the Eurozone that allows financial conditions to ease gradually and recent monetary policy changes in emerging market economies gaining traction.
The continual recurrence of financial market distress leading to sovereign distress and bailout packages that provide temporary relief in the Eurozone heightens the potential for uncontrolled default and Euro exits. Both these scenarios will have a severe impact on global economic growth prospects and wealth growth.
This report is an analysis of global developments and trends in wealth and ultra wealthy populations for 2012 to 2013 based on Wealth-X’s proprietary research.