UN fears second global recession

The global economy is at a risk of facing another major downturn, a report has suggested.
The 2012 World Economic Situation and Prospects (WESP) report, which complied by UN economists, said 2012 would be crucial in shaping the economic future.

"The situation in the world is rather grim. We have a situation where we may well be at risk of a double dip. In any case, it is very likely that there will be further slowdown," UN Assistant Secretary-General Jomo Kwame Sundaram said.

It predicted that developing nations, expanding by 5.4 percent in 2012 and 5.8 percent in 2013, would be major drivers of growth, Xinhua reports

The report also said high unemployment, particularly in developed countries, is adversely affecting growth, and added fiscal austerity measures that have been passed in response to high public debt in developed countries were partly responsible for the cause.
 
If there's no more fiscal stimulus there's no other factor that will keep up the demand, particularly in developed countries.

India inches closer to crisis

India may face its worst financial crisis in decades if it fails to stem a slide in the rupee.
The Indian economy is one of the most vulnerable to liquidity shocks in the region, not helped the least by deficits in its key balances