GSAM's O'Neill: How I see the world in 2012

NEW YEAR PREDICTIONS

Global GDP growth will be strong this year, the euro will survive, and there will be a soft landing in China, said Goldman Sachs Asset Management chairman Jim O'Neill in an optimistic set of predictions for the new year.

However, his sentiments are more restrained than last year’s bullish predictions, which were generally more positive than consensus. GSAM is predicting global GDP growth of 3.4% for 2012, slightly below economists' expectations of 3.7% growth for this year and 4.1% for 2013. O'Neill also said recession is likely in the eurozone, forecasting a 0.4% contraction for this year against a widely expected 0.4% figure for growth. The investor's forecast for the US is more optimistic than consensus at 2.2% growth, followed by 2.5% in 2013. “Contrary to popular belief, we think the transmiss...