SaxoBank economist: EU crisis has hit low-point and can only improve

Monday, 19 November 2012 12:46

After three years of modest growth, the Eurozone is back in recession. Its GDP contracted one percentage point in the third quarter, spurring new concerns over the future of the currency union. However, Saxo Bank chief economist Steen Jakobsen believes the crisis is unlikely to worsen.

"We are getting to a point where things are so bad that it can’t actually get much worse... Now I think that we’re in a crisis point, and when you move to a crisis mode you have to remember we become far more able to create a mandate for change", he told RT.

Jakobsen believes the best way for Europe to restore growth is to “focus on creating jobs” and to not "overdo any macro policy.” When asked about Greece's future in the currency union, the economist said there is a "99.9% chance that Greece will get the relief in terms of extra funding next week", but that the country is likely to leave the euro "inside the next six months".

 

Courtesy of RT.com

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