The Organisation for Economic Co-operation and Development (OECD), the rich country club, has slashed its 2012 growth estimates for developed countries, particularly for the euro zone.
It estimates that gross domestic product (GDP) growth for the OECD member countries will decelerate from 1.9% this year to 1.6% in 2012, before recovering to 2.3% in 2013.
But take a look at the chart which shows that government debt-to-GDP ratios will not only remain high, but will also increase in 2013.
That will not only act as a drag on growth, but could mean that the uncertainties associated with the high sovereign debt levels, particularly in the euro area, could continue till 2013.
Also See | Government gross fnancial liabilities as % of GDP (PDF)
Graphics by Ahmed Raza Khan/Mint