The debt crisis in the euro zone is a key threat to the global economy. With many EU banks highly exposed, weaker credit conditions undermine growth prospects in the euro zone and beyond. Budget cuts across Euroland and weak growth threaten to sustain the debt crisis, potentially leading to dire consequences for global financial stability. Meanwhile, continued currency volatility could trigger an outbreak of ‘currency wars’ that could in turn presage ‘trade wars’. This would significantly increase risks for cross-border trade and investment, disrupting supply chains and threatening already-fragile profits.
Amid continued policy uncertainty and market volatility, it remains critical to track interconnected developments at both the global/regional level and in the individual countries where you have exposure.
November´s free Country Risk Reports.