Business Times

Eurozone crisis could spill-over to the US

Despite the depressed economic conditions, there is no protracted recession or major financial crisis in Europe, however if the Eurozone crisis escalates, there could be spillover risks to US economy, according to a regional ratings expert. "Protracted economic slowdown and health of the banking sector could impact growth, risk perception and funding availability, said Managing Director - South East Asia of Standard and Poors Rating Services - Surinder D Kathpalia. He was the keynote speaker at a forum jointly organized by the Institute of Chartered Accountants of Sri Lanka and RAM Ratings Lanka Ltd on 'Rising Global Risks Cloud Asian Outlook' in Colombo last week. In remarks released to the media by the Colombo accountancy institute, he was quoted as saying that abrupt trade/capital controls, protectionism measures, idiosyncratic political risks and risk of asset bubbles would add to potential policy mistakes in tackling the rising risks.

Discussing the Asian outlook, he said that Asia felt the tremors from Europe in the second half of 2011 compounded by sensitivity of the region to capital flows, trade impact more pronounced in open economies, global risk appetite and liquidity matter that even impacted the relatively domestically driven economies, oil sensitively of the region and rising oil price resulted from political instability in the Middle East etc.

He said that in a nutshell, a country's ability and willingness to honour financial obligations impact the sovereign rating and most Asian economies would remain relatively benign in this sphere, owing to economic fiscal and external resilience, but risks have intensified; policy challenges are acute; and the likelihood of the downside scenario has increased. He called for political leadership which is a critical factor in policymaking and dealing with some of the uncertainties.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Revenue falls short of 2011 budget target
RCL buys Asia Siyaka
New protest: “NO to wage hikes”
Finance Cos. look at new investment options
Sale of vehicles likely to drop by 60-70%
Comment - Rising costs: Perception or reality
Most important subjects for your child
Patchy record at garment factories on allowing worker unions – apparel sector study
IMF endorses adjusted Government policies
Southern Gujarat business delegation visits EXPO 2012
Employable skill is a key element for youth employment : ILO
Chinese investors planning $50 bln port city in SL
Trinco golf links inaugural tournament hosted by Etisalat
AV Production marks 20 years in the events’ industry
Dankotuwa to prop up good table manners and arrangements
Banks need to be cautious on risks
www.lancoupon.lk promotes ALFA Plus 110 Hybrid Scooter
Dissabandara appointed acting DG at SEC
Nestlé opens new UHT milk plant at K’gala
Challenge for accountants is to look beyond numbers : expert
Central Bank increases interest rates to halt surge in credit growth
UTE marks 65 years support to Sri Lanka’s development
Flower Collection Centre opens in N'Eliya
Oceanbiz organises career leadership workshop in Colombo
SriLankan Airlines trains staff for Mattala airport
HSBCnet Mobile - banking in the palm of your hand
SriLankan mulls further flight cuts in Europe
HNB first local bank to get international rating
Softlogic invests in brokerage
Suzuki & Suzuki/Maruti in free inspection campaign in Nuwara Eliya
Eurozone crisis could spill-over to the US
Sri Lanka's first food certification firm launched
Orient insurance records 100 million premiums
Tourism legend Ebert Silva passes away
Plea to exempt new taxes from already-ordered vehicles

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution