Stock Groups

Ratings firm S&P Global cuts euro zone growth forecast to 3.3% -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO : The huge Euro logo is maintained by workers in front the European Central Bank headquarters in Frankfurt. This was December 6, 2011. REUTERS/Ralph Orlowski

LONDON (Reuters) – Credit rating agency S&P Global (NYSE:) cut its euro zone growth forecast for the year on Monday to 3.3% from 4.4% previously, saying higher energy prices caused by the Russia-Ukraine war would hit households’ spending power.

“Thanks to a strong recovery momentum and sufficient cash buffers, we don’t expect a full-year recession but rather a drop in GDP growth to 3.3% this year versus 4.4% previously,” S&P said in a report.

In addition, it said that European countries are among the most at risk due to their close proximity to Russia or Ukraine.

“Uncertainty surrounds our forecasts is greater than usual, with downside risk to growth for 2022 as well as upside risks for inflation in the next year.”

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of the potential risks and financial costs involved in trading the financial market. It is among the most dangerous investment options.

[ad_2]