Expect eurozone recession by mid-2012 - Raiffeisen bank

30 December 2011 11:56  [Source: ICIS news]

LONDON (ICIS)--A recession can be expected to register in the eurozone from the end of 2011 to mid-2012, the chief analyst at Raiffeisen Bank International said on Friday.

Eurozone GDP can be expected to fall by 1% in 2012 year on year, with the turbulence of financial markets and political disputes within many countries and at the pan-European level now affecting the real economy, added chief analyst Peter Brezinschek.

“A clear solution to the [eurozone debt] problem has yet to be found, and this is reflected unequivocally by the global markets," he said.

“The distinct reticence of companies with regard to new investments and the increasingly gloomy prospects for exports are the primary reasons behind modest forecasts for the next six months,” Raiffeisen added in an analysis of the likely economic scenario ahead.

US GDP should grow 1.5% and emerging markets GDP 5.7%, the bank said.

Private consumption should provide support for the economy in those countries with robust job market data and relatively high wage increases, it added.

By: Will Conroy
+44 20 8652 3214

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