gulfnews : Eurozone crisis threatens Gulf

Dire economic growth in the Eurozone is a threat to trade, investment and expansion in the Gulf region, local economists and market analysts warned on Tuesday.

According to new data, the 17-nation bloc grew by just 0.2 per cent on a quarterly basis with analysts expressing particular concern over sluggish GDP growth in Germany, which had been driving Europe's economic recovery.

'The problems in the Eurozone will have an effect on the GCC because we are heavily connected to Europe as a trade and investment partner. If Europe does not address these issues we could be on the verge of a crisis that would put [the collapse of] Lehmann Brothers in the shadows,' said Nasser Saidi, chief economist at Dubai International Financial Centre.

* username: rupertbu