The two Economies that will affect the global market this year and in the following years are America and China. How will these economies fair this year? America’s growth seems to be slowly improving and the jobless figures are moderately improving. The large American companies are awash with cash reserves and will only need an improvement in the economy to start investing again.

This brings us to China, whose growth figures for the third quarter of 2011 were 9.1% with a projection of around 8% for the economy in 2012. With these figures and the increase in inflation the outlook for China is not looking rosy. There is a speculative Property Bubble in the main cities and talks of loans that are held by local governments turning bad.

“China finds $84bn local government debt irregularities” with headlines like this on the BBC this is reminiscent of the events that happened in America pre crunch with talk of a soft Property bubble landing. No cross contamination from Subprime Mortgages and the view that all subprime mortgages cannot fail at once. They said “this time it will be different”.

How will this affect the UK’s economy in 2012? Well, with no solution to the Euro crisis in sight and the chances of getting any agreement with 27 independent countries all looking after their own interests, economical as well as political it does not look good.

As one old communist leader said “this year will be worse than last year, but next year will be even worse than this year”