Business in 2012: Crystal ball gazing
2012 is shaping up as a tricky one to negotiate for anyone in business. Here's a snapshot of what's on the horizon.
Pick a number
Forecasters say the economy will grow around 3 per cent a year for the next two years - but we remain at the mercy of world markets.
Europe is heading for recession and the debt crisis there hits us in three ways: credit, trade and confidence.
US debt is at alarming levels but late this year there has been some encouraging economic data from the States and economists there are picking growth of 2.4 per cent next year.
Falling corporate profits in China and a cooling domestic property market are dimming growth prospects for the world's second-largest economy, which affects our exporters and the mineral-centric Australian economy - more bad news for us.
Home truths
Economists at the leading banks expect a relatively flat 2012 yet the enthusiasm of residential real estate agents knows no bounds. Somewhere in between lies the truth. New Zealanders still love bricks and mortar and spurn most alternatives, particularly the sharemarket.
Most Asian countries are net importers of oil, including the manufacturing powerhouse China. In July 2007, the aviation industry was hard hit when oil prices reached a record $147 a barrel. Then the global economic slump in 2008 led to sharp declines
It, however, cautioned that Indian carriers operate in an exceptionally high-cost environment and higher prices of air turbine fuel (ATF) can derail the growth of the sector. "In the backdrop of higher crude oil prices, there is a severe risk of
Some analysts in the US see Brent crude prices touching $158 a barrel by 2011-end. From early 2010, the Indian aviation sector has been on a revival path. The sector is likely to grow at 20 per cent in 2011 but high oil prices could hurt it.