Uncertainty continues to frustrate forecasters as economic policy uncertainty increases and recessions get deeper and recoveries slow, Swedbank said in a report.

“Going forward, the uncertainty index shows an upturn in the US as it faces the fiscal cliff, and a small decrease in the euro area in line with the steps taken to ease concerns about a euro collapse.

“Still, uncertainty levels are high and point to worse economic developments ahead than if uncertainty was lower. The good thing – it is not too late for politicians to make a difference!” the report said.