15/05/2012

By Adam Cadle

Economic market performance in 2012 will largely depend on how governments perform in their geopolitical roles, according to a study conducted by the Economic Intelligence Unit.

In a study of nearly 800 institutional investors, respondents stated that the threat of an oil spike is the main risk to global recovery along with tensions over Iran’s nuclear programme. The economic risk contagion threat from Spain was also mentioned.

Entitled The search for growth, the report has also revealed that less than half of respondents think that businesses will increase capital investment in 2012. Further, investors are continuing to move away from commodities in the face of lower demand for many raw materials.

Whilst the majority of investors believe that debt levels are unlikely to change over the next year, they do believe that debt will continue to restrict economic recovery since the 2008 global economic crisis.

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