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She faces power cuts, water shortages and a probable recession.
Economists said, however, that the numbers obscure severe slowdowns in Ireland and Spain, which have been battered by the global housing decline, and a probable recession in Italy.
Standard & Poor's issued a similar warning last week, saying it could lower the sterling credit ratings of Germany and France and cut other countries' credit scores as Europe headed into a probable recession next year.
If the economy were simply to stall in 2008-09 and 2009-10, this could double planned borrowing of £38 billion next year; if output were to contract over the period the outcome would be costlier yet.Making matters worse, the shape of the probable recession is likely to inflict particular fiscal pain.
Similar(56)
The euro zone is entering a probable deep recession as the continuing financial crisis spreads to the real economy.
As things look now, it certainly appears possible, perhaps even probable, that a recession will either begin, or be well under way, in conjunction with the U.S. presidential election.
Economists at the Mizuho Research Institute in Tokyo also predicted that a recession was probable but would probably be short-lived.
Even so, the thinktank thinks recession is probable in Spain and Italy.
But at the end of June, six months from the recession's probable end, stocks were down 18percentt from last year.
That suggests the bear would outlast the probable duration of the recession, which is a little hard to imagine.Ms Smith also mentions the analysis of Carmen Reinhart and Kenneth Rogoff, who studied a wide range of past financial crises.
White House Adviser Says Recession More Probable Addressing the possibility of another quarter of negative GDP growth, economic adviser Glenn Hubbard Glenn Hubbard said, "The fourth quarter appears to also be very adversely affected by the [Sept. 11] shocks and we'll just have to wait and see".
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