The document provides an economic analysis and outlook from Principal Global Investors. It discusses factors that have contributed to slowing global economic growth, including uncertainty around government policies. While growth has decelerated, the odds of a double-dip recession are seen as low. Emerging markets continue to drive global growth, with China expected to remain above 8% growth. In the US, momentum has slowed but the economy retains positives such as rising incomes and profits supporting investment.

1. Principal Global Investors The Lowdown on the Slowdown BOB BAUR, PHD CHIEF GLOBAL ECONOMIST October 2010 All expressions of opinion and predictions in this report are subject to change without notice. This report is not intended to be, nor should it be relied upon in any way as a forecast or guarantee of future events regarding a particular investment or the markets in general. All opinions expressed are those of Principal Global Investors.

3. Financial Crisis Hits Economy…

4. And Employment

5. Great Start to Recovery

6. Moderate Economic Growth

7. Job Doldrums