2012 Preview: What Could Throw The Economy Off Course?

2012 Preview: What Could Throw The Economy Off Course?

It was a year of political ebb-and-flow as Brussels was whipped into a frantic storm.

Policymakers were led by markets and markets became led by politics.

The eurozone crisis is still the most clear and present risk to the world economy over the next 12 months, but it is not the only one.

While there is some good news, such as the UK economy bouncing back between July and September with stronger growth than previously estimated, there are numerous risks lurking around the corner.

The Arab Spring is not over, there are stirrings of political dissent in Russia, a transition in North Korea, the danger of an escalation of tensions in Iran, as well as real economic concerns over China and the USA.

So what could throw the world economy into an even deeper crisis?

Here is a series of margin risks that could plunge the already fragile economic recovery off track in 2012. While unlikely, they are real and potentially devastating.

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