World economy will grow a paltry 2.7% in 2012

Onslaught of corporate insolvencies also predicted by Euler Hermes.

The credit insurer said the struggling Euro zone will lead the global decline with shockwarve effects reverberating across the Asia Pacific region.

"World economic growth is forecast to slow to 2.7% in 2012, from 3% in 2011, as growth in emerging countries runs out of steam and the ‘submerged’ countries sink further into the mire," said Euler Hermes in a release.

"Corporate insolvencies were still declining (down 3%) at world level in 2011. In 2012, Twenty-five of the thirty-three countries reviewed are expected to move into the red in 2012, with European countries topping the list, particularly those of the Mediterranean region (up by 19%) which have been severely weakened by the present crisis," it added.

"Corporate insolvencies will continue to decline in the Americas and the Asia-Pacific region but with a clear change of pace, with decreases of respectively 7% and 1% in 2012 compared with 12% and 5% in 2011. The reason is the much weaker growth outlook," it read further.