Growth in 2012

Which economies will grow and shrink the fastest in 2012?

LIBYA’S economy will grow faster than any other in 2012, according to the Economist Intelligence Unit’s forecasts, boosted by reconstruction following the fall of Muammar Qaddafi’s regime. The surge is a bounce-back from an even more precipitous slump while war raged. In Iraq, post-conflict chaos has delayed recovery but performance in 2012 may mark the start of something new. Mongolia is enjoying a mining boom and will benefit from investment in that sector; Angola and Niger will gain from relatively high commodity prices. China will continue to experience robust growth; this is fortunate since demand generated by the world’s second-largest economy will counteract some of the drag from the rich world. As for the fastest shrinkers, Europe’s economies feature prominently, as they remain embroiled in the Euro crisis. But Sudan will suffer the heaviest economic contraction, having lost three quarters of its oil reserves to South Sudan when that country seceded in July.