US Not Alone: Moody's Analytics Forecasting Eurozone Recession
More and more evidence that the incipient recession is actually going global, and could become severe.
Economy.com
Euro Zone Outlook: Return to Recession
By Enam Ahmed, Melanie Bowler, and Zach Witton in London
October 5, 2011
View the Moody's Analytics Euro Zone Forecast.
The euro zone will fall back into recession in coming quarters. The outlook has darkened substantially, suggesting the 17-member euro region will report at least two consecutive quarters of contraction over the next year. Three factors are driving the downturn: weakening domestic demand, a dimming global outlook, and tightening financial conditions.
Economy.com
Euro Zone Outlook: Return to Recession
By Enam Ahmed, Melanie Bowler, and Zach Witton in London
October 5, 2011
View the Moody's Analytics Euro Zone Forecast.
- Weak domestic demand, slowing global growth, and tighter credit will drag the euro zone into a new recession.
- Greece's government will default on its sovereign debt early in 2012.
- The size and scope of the European financial stability fund will be increased, and banks will be forced to recapitalise.
- A weak policy response and a slowing global economy are risks to the forecast.
The euro zone will fall back into recession in coming quarters. The outlook has darkened substantially, suggesting the 17-member euro region will report at least two consecutive quarters of contraction over the next year. Three factors are driving the downturn: weakening domestic demand, a dimming global outlook, and tightening financial conditions.