Monthly Briefing on the World Economic Situation and Prospects, No. 48

• World trade continues to slow
• Economic uncertainty continues in the eurozone
• India?s government enacts significant reforms

Growth of world trade has slowed significantly during the year as a consequence of stalling economic activity in developed countries, especially in Europe. After growing by 5 per cent in 2011, the world trade volume expanded by an annualized rate of only 1.2?per cent in the second quarter of 2012.?Most European economies have entered into recession. While around 70 per cent of European trade is intra-European, the sharp?reduction in import demand is also affecting other economies.?

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