"The key question for us is how much aggressive fiscal tightening will drag on growth," said analysts at BNP Paribas in a note on Monday.
"The risk is that, as in many countries the private sector is simultaneously adjusting from unsustainably high debt levels, the public sector retrenchment will weigh on growth more than generally anticipated. In turn, this would damage the ability of governments to comply with the announced targets."
Analysts at UniCredit went one step further, saying the moves announced Monday may not be enough to avoid another downgrade by ratings agencies. The GDP forecasts from the government, for one, may be too optimistic as growth averaged 0.8% from 2002-2008. That would also cast doubt on bringing the deficit down at the government's desired pace, they said.
Via Market Watch
Sem comentários:
Enviar um comentário