Predictions for 2012 and 2013

Source: Goldman Sachs

1. Slow Growth For Two More Years in Developed Economies

The thread holding the global economic picture together will remain one of slow, and in some cases negative, growth. Headwinds from austerity measures which have hit government spending will hit the U.S. and peer nations in Europe. Add in private-sector deleveraging, and a banking system that is on the cusp of further layoffs, and its not too bright. Goldman also sees high unemployment plaguing the advanced nation labor forces.

2. Emerging Markets Will Remain Resilient to the Challenges

Issues that are facing developed nations will not move ot emerging markets. Inflation will begin to ease and economic policy will shift further towards prevention of slow growth. That theme has already proven itself at the end of 2011, as China's central bank, the People's Bank of China, cut reserve requirements by 50 basis points at the nation's largest institutions.

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