NEW YORK and LONDON, Aug. 15, 2012 /PRNewswire/ -- BNY Mellon Chief Economist Richard Hoey said the worst of the global slowdown is occurring right now and he continues to expect a global growth recession in 2012 with global GDP to grow at three percent. Hoey also expects a moderate strengthening of global economic indicators in late 2012 and 2013, according to his most recent Economic Update.
Hoey states that European policymakers do recognize that it is cheaper to support the basic integrity of the euro than to absorb the severe losses which would be generated by its sudden dissolution. "For that reason, we do expect the euro to survive," says Hoey. "The euro should continue to include most of its current members."
While Hoey expects the euro to survive, he believes it is too late to avoid the European recession.
"We believe that Europe is currently in the worst phase of the European recession and the stronger countries can exit recession in late 2012 or early 2013," Hoey concludes. "We disagree with the disaster scenarios for Europe. However, even after the current European recession ends, we expect a multiyear period of sluggish economic activity, given unfavorable demographics, competitiveness challenges and legacy debt issues."See http://www.bnymellon.com/foresight/update-video.html for Hoey's complete August 2012 Economic Update. Notes to Editors: BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.3 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com. BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $27.1 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.5 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter@BNYMellon. All information source BNY Mellon as of June 30, 2012. This press release is qualified for issuance in the UK and US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management (US) and BNY Mellon Asset Management International Limited (ex-US) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Registered office of BNY Mellon Asset Management International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Services Authority. A BNY Mellon Company SOURCE BNY Mellon