- CNTV English - CCTV News

Homepage > News > Biz >

Europe's economy may not meet already low expectations: economist

11-24-2011 09:14 BJT

SINGAPORE, Nov. 23 (Xinhua) -- The global economy will get off to a disappointing start next year and the euro zone will probably not even meet analysts' already low expectations, said Jorg Zeuner, the chief economist of VP Bank on Wednesday.

Speaking at a press conference in Singapore, Zeuner said the situation will start to improve only in the second half of 2012, but it would be too late for noteworthy full-year gains.

Negative growth rates will prevail in the first half of the year for Europe and the lack of confidence in the crisis management skills of the European governments is depressing the mood in the real economy as well as in the financial markets, he said.

How the euro zone's members will change will become clear only in the second half of 2012, too, he added.

European banks are in the process of further consolidating their balance sheets. Further major labour market adjustments lie ahead for many euro countries, and they will have to accept lower real wages if they wish to stay in the euro.

Zeuner said the domestic demand in Asia will help the countries in the region achieve soft landing.

Investors should concentrate on corporate bonds in all rating segments. The international equity markets will recover only after the anticipated, determined intervention of the European Central Bank, he said.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program