Rob Carnell, ING’s chief international economist, warned that the current euro zone debt crisis, which is a fallout of the 2008 global financial crisis, could lead to the downgrading of ratings of countries like Spain, Ireland and Portugal.
Carnell added that the debt crisis may also weigh heavily on the euro and it is expected to drop further during the course of the year. In the overseas market, the euro slumped to a four-year low on Monday as investors dumped the single currency on sovereign debt worries and fears that recent belt-tightening measures would hurt a recovery in the eurozone area.