Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

European Recession Poised to Worsen on Cuts, Roubini Says

April 17 (Bloomberg) -- Economies that use the euro probably will shrink further as governments cut spending and banks seek to lend less, said New York University Professor Nouriel Roubini.

“It’s like a slow-motion train wreck,” Roubini, the economist who predicted the 2008 financial crisis, said today at a conference in Santiago, Chile.

Greece won’t be the last euro-zone country to restructure debt and may exit the euro in 2013 or 2014 along with another small country, the co-founder of Roubini Global Economics LLC said. Roubini also said he doesn’t expect a self-sustaining recovery in the U.S. anytime soon.

The so-called BRIC countries of Brazil, Russia, India and China are “over-hyped” and require reforms to sustain growth, he said. China, which may face a “hard landing” in a few years, needs to grow private consumption as a percentage of gross domestic product, Roubini said.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.