The U.K. GDP slipped 0.2% in the last quarter of 2011, but the overall growth for the year was 0.9 percent. In the context of the global turmoil, this has been a fairly good performance.
The high price of Oil has played havoc with the economies. Europe spent 250 Billion on Oil in 2008, when the financial turmoil began, according to Chief Economist Fatih Birol of the IEA. Last year, 2011, the bill Europe had to foot was 400 Billion.
This clearly indicates that the high price of Oil has had a major impact on economic balance, and the fact that refineries are going out of business and have been on the market for last 3 years and yet unsold suggests that only a lower oil price will help everybody, including the Oil producing countries.
The world population has grown, and there is more demand for everything, so the world economies can all be busy and productive with the people finding satisfaction.
To me, the two key macro-drivers need to be tweaked for further growth. Oil needs to be at not over $85 a barrel for WTI, maybe for a period of six months at least, and the interest rates ought to be not more than six percent in some of the emerging markets, which seem to be following policies which have been abandoned by the major economies which seem to use more supply-and-demand or common-sense economics nowadays, like China and Malaysia.
If there is understanding and co-operation between all nations, all economies could grow this year.