The year started on an unexpectedly upbeat note as the US economic data painted a picture of steady recovery. From stronger retail sales and manufacturing figures, to rising consumer confidence, the US is looking healthier. Elsewhere, however, manufacturing activity was subdued with the euro zone's industrial sector suffering its fifth straight month of declines in December and Asian factories mostly stuck in a rut. Only China and India surprised on the upside.

Both the World Bank and the IMF cut their global economic growth forecasts for 2012. The World Bank projects global growth of 2.5% in 2012 and 3.1% in 2013, down from previous estimates of 3.6% for both years. The US is expected to grow at 2.2%, Japan at 1.9%, China at 8.4%. The IMF was more optimistic with global growth expected at 3.3%, and the euro zone shrinking by 0.5%.

US unemployment fell to its lowest rate since February 2009 at 8.5% in December, from a revised 8.7% in November. In comparison the unemployment rate in the euro zone was unchanged at 10.3% in November, matching forecasts.

The Bank of England, Bank of Japan and the ECB left key interest rates at record lows, as expected.
Oil prices rose sharply in January as the US, the EU, South Korea and Japan announced sanctions against Iran in response to growing concerns about its nuclear programme. Iran owns around 10% of the world's total oil supply. Oil industry experts believe energy markets can afford to lose half of Iran's supply, which would be roughly equivalent to supplies lost during Libya's civil war in 2011, as Saudi Arabia can fill the gap. China and Russia stand to gain the most from the sanctions. Provided Iran does not cut back on oil production, China is set to become its most significant client, placing Beijing in a strong negotiating position. Russia, on the other hand, as the world's biggest oil producer, is well positioned to raise its market share in Europe. Oil union strikes in Nigeria added to the upward momentum.

Liquidity of the euro zone banks, and their willingness to lend to each other, remained a concern as overnight deposits at the ECB reached a number of all-time highs through the month. This is especially significant as it comes after euro zone banks borrowed €489 billion from the ECB last month in a three-year lending facility.

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- Definition of living annuity removed from 1 March 2012 and   replaced by retirement income draw down account ("RIDDA")
- Disability income replacement policies: proposes a tax deduction   for employees on premiums paid by the employer
- Unapproved group life policies: lump sums payable to   employees' dependants should not be taxed
- Retrenchment lump sum benefits to be aggregated with   retirement fund lump sum benefits and taxed via lump sum
  tax tables
- Transfers of retrenchment benefits to preservation funds: allowed   from 1 January 2012 year of assessment
- Transfers from preservation funds to retirement annuity funds and   between preservation funds to be tax free, effective from
  1 January 2012 year of assessment.