2012 WILL BE TOUGH- UN

Those expecting the new year 2012 to be rosy will be disappointed by the report just released by the United Nations. According to the report, UN warned that failure by policy makers and the imposition of Austerity programmes across Europe due to the sovereign debt crisis may lead to another global showdown. The report also revealed that because of strict budget measures, growth in the European union would only hit 0.7 per cent compared to 1.6 percent registered in 2011 "Austerity is not an effective way to counter the debt crisis" said Robert shelburne, a senior Economic Adviser to the UN Economic Commission for Europe,especially when interests rates are low. The Agency France Presse (AFP) quoted shelburne as saying that Austerty was costing the world economy a trillion dollars in lost out put. Meanwhile, the world Bank report has also projected a drastic decline in growth in the year 2012.