Global Financial Strategy - S&P; says 40% chance of EU double dip

Global Financial Strategy

Search the site >>Advanced search

First for financial regulatory news and views

S&P; says 40% chance of EU double dip

Tuesday 4 October 2011 – by Will Henley

Europe is facing a 40 per cent chance of enduring a double dip recession, according to leading credit rating agency Standard & Poor’s.

In a report issued on Tuesday morning entitled ‘The spectre of a double dip in Europe looms larger’, the firm cites a slowdown in growth in the US and worsening business sentiment across the continent.

For the second time in five weeks, the agency has revised downward its projections for economic growth for the next fifteen months. GDP growth in the eurozone is now forecast at 1.1 per cent in 2012, next to an earlier 1.5 per cent projection.

Jean-Michel Six, Standard & Poor’s chief economist for Europe, said: “We still don’t expect a genuine double dip to occur in the eurozone as a whole or in the UK, but we recognise that the probability of another recession in western Europe has continued to grow.

“We now estimate the probability of a new recession in western Europe next year at about 40 per cent, although in our baseline forecast we continue to anticipate sluggish and unevenly distributed growth in the coming five quarters.”

Related articles:

Europe predicted to escape double-dip

Asia would be worst hit by US double-dip

WHAT DO YOU THINK?

Name:

Email:

Comment:

Post as	Anonymous
	Display name

Please, enter security code

No comments yet.

Login	Register	Most read	Most commented
Username Password >> Remember me >> Forgotten your password? >> Sign Up GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

FIND A REGION