With ongoing recession, Euro zone is headed for its deepest slump since 2009. Where one huge global economy, Euro zone, is facing severe economic crisis, China, another major world power has already started to recover itself from its prolonged economic plunge. Despite continued slump in European economy, global purchaser managers’ index is suggesting that the world economy is actually not worsening, suggesting better performances of other large economies, i.e., U.S, China and Japan.

The major reasons for positive managers’ index despite recession in Euro zone can be attributed towards manufacturing growing at fastest pace in five months and expansion in Chinese manufacturing sector. With U.S and China pulling up the world economy, Euro zone on the contrary, is actually dragging the global economy with its prolonged recession and the picture for year 2013 is also forecasted to be gloomy. Decline in service sector in European economy, which is believed to be the backbone of European economy, is in real hurting the global economy. Banks, hotels, restaurants and other hospitality industry are the most affected sectors in the industry, dragging the European economic indicators.

As per analysts, European economy is shrinking by 0.5 percent this quarter and the downturn is significant since the economic recession of 2009, i.e., financial crisis. Germany, one of the major economies of Euro zone, shrank for a seven straight month in the month of November in terms of business activities and the reason for the drag is again fragile performing service sector. Similar is the case with the French economy with analysts forecasting economic shrink for this quarter. Not to forget, Spain, Greece and Portugal are the member countries with severe economic recession and have been hurting the entire European economy with their austerity measures, endangering the future of Euro zone.

With poor performance for the year 2012, all eyes are set on Chinese economy and its efficiency to boost the global economic outlook, overcastting Euro zone’s economy, forecasted to be fragile for 2013 as well, along with U.S economy. As per analysts and economists from around the world, Chinese and American economic indicators shall be of great scope and value to determine global economic perspective during the year 2013.