HONG KONG (MarketWatch) -– French bank Societe Generale said Monday it expects the euro-zone economies to fall into recession next year, adding that growth is also likely to be on the weaker side for the U.S. and China.
Europe leaves summit empty-handed
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The bank said financial stress conditions, elevated from the failure to resolve the euro-zone crisis, will elevate credit costs, erode confidence and result in negative wealth effects.
It warned that businesses are holding off hiring and investment plans as the crisis has moved from the financial sphere to undermine confidence in the real economy.
“The spillover from the euro-debt crisis has proven greater than previously expected and we now see recession as inevitable,”
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