Bloomberg News

Hatzius Says Euro Zone Crisis Will Curtail Bank Lending in U.S.

November 30, 2011

Nov. 30 (Bloomberg) -- The financial crisis in the euro zone will weigh on the U.S. economy through early 2012, said Jan Hatzius, chief economist for Goldman Sachs Group Inc.

“There will be an intensification over the next few months,” Hatzius said today on a conference call with clients. A “tightening of financial conditions” will limit the “willingness of banks to lend,” he said.

The world’s largest economy will expand at a 1 percent annual pace during the first half of next year, Hatzius said, adding that the euro area will contract 0.8 percent in 2012 before growing 0.7 percent the following year. Global growth will average 3.2 percent next year and 4.1 percent in 2013.

--Editors: Kevin Costelloe, Gail DeGeorge

To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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