UBS Sees European Recession as it Cuts Euro-Area, U.K. Forecasts
UBS AG cut its euro-area and U.K. economic growth forecast for 2012 and predicts a recession in mainland Europe next year, citing a tightening in credit conditions.
Gross domestic product in the euro zone will probably grow 0.2 percent next year, compared with a previous estimate of 1 percent, economists including Stephane Deo and Martin Lueck said in an e-mailed note to clients dated Oct. 28. They see the region’s economy contracting in the first half of next year and then expanding 1 percent in 2013.
UBS economist Amit Kara, based in London, lowered his 2012 U.K. growth prediction to 0.7 percent from 1.5 percent in a separate note dated the same day. Britain’s economy will expand 1.3 percent the following year, he said.
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