Standard & Poor’s – the ratings agency that made the news when it recently downgraded the U.S. credit rating – has cut its earlier growth projection for the Eurozone economy. Despite the reduced outlook, S&P said it does not forecast a recession for the region.
In it’s latest update, S&P reduced Eurozone growth for 2011 to 1.7 percent from 1.9 percent. For 2012, S&P lowered its outlook to 1.5 percent from 1.8 percent.
“We continue to believe that a genuine double dip will be avoided given the still existing avenues for growth, although we recognize that downside risks are significant,” noted the S&P report. “In particular, we will closely monitor trends in consumer demand over the coming quarters.”