EUROPE’s spluttering economy is equivalent to a plane “flying on one engine” a leading rating agency has warned, as it slashed growth projections for the bloc.
The wind has been knocked out of the finances of the single-market this year amid fears over a global crisis triggered by China’s slowdown and low oil prices, according to Standard and Poors (S&P).
Estimates from the agency are the eurozone economy will now grow just 1.5 per cent this year, down from a previous forecast at the end of last year of 1.8 per cent.
The continent has been particularly vulnerable to global shocks because it has been solely reliant on consumer consumption for growth – just one engine to power the recovery, said S&P.
The agency’s chief economist for Europe, the Middle East, and Africa, Jean-Michel Six said “it’s been essentially a single-engine, consumer recovery.”
He added: “A recovery that mainly relies on one cylinder is by definition suspicious: It could quickly grind to a halt, as it did in the previous cycle in 2010-2011.
Full article: Eurozone is ‘flying with one engine’ Disaster looms for EU, warns chief economist (Express)