Growth in advanced economies is expected to remain moderate in 2012 and 2013 on the back of high debt and borrowing costs; high levels of unemployment and the problems in the banking sector. The International Monetary Fund (IMF) projects global economic growth of 3.3 per cent in 2012, increasing slightly to 3.6 per cent in 2013, before strengthening further to 4.1 per cent in 2014. These forecasts assume effective policy reactions in the US and the Euro area, continued monetary accommodation and improved financial conditions. The Euro area has seen a marked decline in economic activity driven by financial difficulties while employment and output growth prospects have notably weakened in the US. This indicates continued uncertainty in the global economy. Euro debt crisis and the US "fiscal cliff" remain significant risks to the global economic outlook.