LONDON, Nov. 9 (Xinhua) -- About 70 percent of European investors now believe there is a high risk of a double dip recession, a Fitch survey revealed on Wednesday.
According to the latest quarterly European fixed income investor survey form the ratting agency of Fitch, 40 percent and 21 percent of investors believed so in the previous two quarters respectively.
"With much of world growth dependent on emerging market dynamism, this sharp swing in sentiment partly reflects investor concerns over recent signs of a slowing in many of these emerging economies," said Monica Insoll, Managing Director in Fitch's Credit Market Research group.
Respondents expressed a more negative sentiment on the outlook for fundamental credit conditions in the emerging market sovereign sector than last quarter, with 41 percent of respondents now expecting deterioration, up from 32 percent, while 36 percent of respondents also said emerging market sovereign credit quality is over-stated and at risk of crisis.
In its latest Global Economic Outlook, Fitch made downward revisions to its growth forecasts for all major advanced economies and, whilst it expects emerging market growth to remain robust, it also revised down its 2011 and 2012 GDP forecasts for BRIC countries, namely Brazil, Russia, India, and China.