Despite moves to boost confidence in the world's volatile financial markets, the global economy has entered an uncertain period with the credit crunch and the US mortgage market crisis undercutting economic growth prospects for the coming 12 months.

The upheaval in the US mortgage market and plunging house prices have not only badly shaken economic confidence in the US. The crisis has also sent global investors on a roller-coaster ride as share markets have reacted to the risk of the US's economic convulsions spreading to other parts of the world.

Set against the backdrop of the US presidential election campaign, the troubled US economy has also helped to stoke a debate about what has gone wrong with the international financial system, and Europeans have stepped up calls for action to ensure closer monitoring of risky investments.

In the meantime, the world's leading central banks have moved to bolster shaky international credit markets. But will the steps underway be enough to pull the giant US economy back from the brink of recession and lay aside the concerns about the outlook for global economic growth?

And, after years of solid global economic growth, will the strong performances of the world's leading emerging economies in Asia, the Middle East and Eastern Europe continue to be enough to help offset the slump underway in the US, the world's biggest economy?

Despite the cautious optimism in parts of the world that the slowdown might not be as severe as first thought, it also remains unclear to what extent the world economy has managed to decouple from the giant US economy.

This is particularly the case in Asia, where a sudden reversal of economic growth, in China for example, could send ripples around the global economy. The threat of new share market turmoil is further kept alive by fears that the international finance companies might still be required to cover losses currently hidden from view in their balance sheets.

The sharp slump in the dollar on the back of the US economic woes could help to lay the foundations for an equally dramatic rebound in the US economy later in the year as a pick up in exports helps to fuel growth. The surge of oil prices, which have jumped by nearly 60 per cent in the past 12 years, is also looming large over the world economy, generating fears of renewed inflationary pressures at a time when economic growth is sliding.

Looking at the fallout from the US housing market crisis and the international credit crunch, the dpa International Service in English publishes a special package scheduled to run on the wire shortly, with dpa correspondents across the world highlighting the impact and the prospects for the economies in the world's key regions in the coming 12 months:

Berlin - FEATURE: World economy in crisis: What is to be done? By Andrew McCathie (795 words/World-Economy/Overview)

Washington - FEATURE: Home crisis, weak dollar fuel US recession and recovery. By Chris Cermak (695 words/World-Economy/US)

- FEATURE: How credit crisis spread from Main Street to Wall Street. By Chris Cermak (800 words/World-Economy/US/Markets)

Berlin - FEATURE: Europe faces tough year as economic divide emerges. By Andrew McCathie (680 words/World-Economy/Europe)

Buenos Aires - FEATURE: Mexico shakes over US crisis, Brazil hopes to emerge unscathed. By Veronica Sardon (810 words/World-Economy/LatAmerica)

Bangkok - FEATURE: South-East Asia still addicted to exports. By Peter Janssen (665 words/World-Economy/Asia)

Beijing - ANALYSIS: China frets over inflation, currency policy. By Bill Smith (745 words/World-Economy/China)

Vienna - FEATURE: Eastern Europe cools off, but may get soft landing. By Tony Czuczka (605 words/World-Economy/CEE/EU)

Moscow - FEATURE: Russia, an island of stability amid turbulent markets. By Alissa de Carbonnel (750 words/World-Economy/Russia)

Tokyo - FEATURE: Japan hopes to head off a new economic slump. By Chie Matsumoto (750 words/World-Economy/Japan)

Berlin - BACKGROUND: World economy in crisis (620 words/World-Economy)(dpa)