Stimulus To Support Growth in 2012, But Moderation To Follow

BMI View: Although we have revised down our 2012 real GDP growth forecast to 3.9%, from 4.8% previously, in line with our deteriorating global growth projections, we remain above consensus as expansive monetary and fiscal policy should support growth over the next 12 months. While there are risks of a more significant drop off in economic activity, the main impact of excessive stimulus in 2012 will be a weaker long-term growth rate.

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