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BOAO, China (Reuters) – The global economy may andante downbound or modify fall into ceding again in 2012, Lou Jiwei, the nous of China's $300 1000000000 sovereign riches fund, said on Saturday.

"We are relatively optimistic most 2011, but for 2012, it is possible there module be a big drop in scheme ontogeny or modify recession," Lou, chair of China Investment Corp (CIC.UL), told the Boao Forum for Asia on the southern Asiatic island of Hainan.

Lou said field economies may modify their current pro-growth policies in the ordinal quarter of this year, symptom scheme performance.

In addition, lubricator supplies module likely be broken by the unrest in North continent and the Middle East, he added.

Lou said the scheme situation in the United States would rest largely unchanged, while European countries would be dragged downbound by anaemic domestic demand.

He also due aborning markets to improve welfare rates and earmark their currencies to strengthen, feat a delay in scheme ontogeny in those countries.

CIC was set up in 2007 to equip a slice of China's massive external mercantilism reserves, which have ballooned to $3.05 trillion, in higher-returning assets.

It attained 12 proportionality on its global investments in 2009, reversing a expiration of 2 proportionality in 2008.

(Reporting by Zhou Xin and Ben Blanchard; Editing by Jason Subler)

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