Banner year for investors, especially outside Britain Elsewhere in Europe, Italy's MIB 30 and Portugal's PSI General index have both added 8pc, while Spain's Ibex 35 has slumped 3.1pc, with confidence dragged down by sky-high unemployment and a soaring debt-to-GDP ratio. The index has fallen despite its third-largest constituent - Zara owner Inditex - soaring by 70.5pc over the year. One of the main causes of the Ibex fall has been a 22pc slump in telecoms group Telefonica, which makes up 14.2pc of the index and is its second-largest constituent. The share which has most impact on the Ibex is Banco Santander, with a weighting of 18.2pc. Its shares have risen 4pc. However, Greek shares have managed to perform better than any other market, with the Athens Stock Exchange General Index rising a very impressive 32pc. But this is a recovery from a low base and says more about how far the market fell in 2011 than how much things have improved this year. Despite nervousness as the US approaches the "fiscal cliff," Wall Street has enjoyed a good year. The 30-stock Dow Jones industrial average has risen 8pc, while the broader S&P 500 has soared by 13.4pc. The US economy has shown remarkable strength. The country's third-quarter GDP growth was recently revised up to 3.1pc from 2.7pc, its highest growth rate since late 2011. However, economists remain unconvinced that such a speedy recovery can continue into next year. Emerging markets have turned in a mixed performance but the undoubted loser is China. The benchmark Shanghai Composite Index has risen just 0.9pc, making it one of the worst-performing global indices. Growth has slowed in the world's second-largest economy but GDP is still expected to have increased by about 7.5pc and should accelerate above 8pc in 2013. The rest of the so-called "BRIC" countries have fared better. Brazil's Bovespa has risen 7.7pc, with Russia's Micex also up 5.3pc. The clear winner, however, is India, where the blue-chip BSE Sensex rocketed an impressive 25pc. However, none of the major emerging markets have managed to outperform Germany. Rivalry between Australia and New Zealand is always strong - but the Kiwis have managed to beat their Aussie cousins in the stock market stakes. The ASX 200 in Sydney has risen 14.3pc, with the NZX 50 up 24pc. The Australian performance has been hampered by the index's heavy exposure to mining shares, which have had a downbeat year on fears of stalling growth in China. So, all-in-all, equity investors have had a banner year in 2012 - especially those investing outside the UK. Germany, although just pipped by a recovering Greece, was the best investment proposition of the year in terms of performance and liquidity.