However, recent developments may change the outlook, which Spain has highlighted, StarTribune reports.  Now, the IMF points to three potential scenarios: Eurozone credit may fall 1.7% by the end of 2013, creating a hallow recession and return to growth in 2013. If the Eurozone rescue fund and guidance is better-than-expected, credit would only shrink 0.6% and the area would return to growth this year. If fiscal agreements deteriorate, credit would drop to 4% or more, causing a deep recession.

The IMF now projects that growth in the U.S., Japan and emerging Asia could drop off by more than 1% in 2012 and 2013 if the worst case scenario comes to pass. [Political and Growth Uncertainty Weigh on Stock ETFs]

  • SPDR S&P Emerging Asia Pacific ETF (NYSEArca: GMF)

For more information on global markets, visit our global ETFs category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own SPY.