The European Union (EU) expects to sink into another recession in 2012. Against the background of the PIGS with Greece currently labouring on the brink of economic disaster with threats to be booted out of the EU and Spain about to follow, what does 2012 portend for the UK where rising unemployment is rampant?
Of particular concern for Barbados and other small islands in the English speaking Caribbean, this cannot be good news. In the case of Barbados the UK is a key tourism market and significant foreign direct investment originates. A flagging UK and EU market is not good news.
A reasonable question is what alternative investment opportunity does the regional equity market offer as a risk mitigating strategy.