A recession could be upon us, but how deep?

Eurozone in crisis

Robert Quinn, chief European equity strategist at S&P Capital IQ, looks at what lies ahead for the eurozone.

We have seen historically significant progression in European policymaking in the past few weeks as European leaders generated some much needed domestic political consensus to go alongside greater EMU co-ordination in ramping up the crisis management ammunition available. Alas it has come too late to halt this downturn turning into a recession in our view but it does hopefully provide a necessary floor. Still, Q3 GDP outturns will likely display a wider divergence among eurozone members, with most economies limping to very slow growth, but we expect the whole bloc may still contract in t...