CNBC-TV18 caught up with Gerard Lyons, chief economist and group head of research at Standard Chartered at Davos 2012 to talk about his expectations of the global economy.
Below is the edited transcript of the interview. Also watch the accompanying video. Q: What do you make of everything that you hear at this conference? The IMF has downgraded its outlook on global growth this year, a contraction in Europe is expected; what is your assessment of the global economy?A: The global economy is cooling, but it is a very divided and disconnected world economy in the sense that it is not the same picture everywhere. There are clearly some big challenges that have come to the fore here at Davos. In terms of the world economy, Europe and the UK are in recession, America is growing at a steady, but not at a spectacular pace and the emerging economies, India included, is cooling down, they are not collapsing. Here at Davos, the mood was quite pessimistic previously, there is a sense of realism this year and feeling that there are issues to be addressed, there is progress to be made, but perhaps the biggest worry are the continued problems in the Euro area and the Euro zone. Q: We are confronted with various scenarios, the possibility of a default in Greece, and what that means then for the contagion impact on other countries, for instance Portugal, Italy and that
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