US Economist Nouriel Roubini said on Saturday that the Eurozone is witnessing a zero growth and the US is soon going to face the brunt of financial difficulties.
In an interview with Swiss daily Tages-Anzeiger, he said that severe recession is going to hit the Eurozone very soon.
"There is that risk, at least for the Eurozone. Growth will fall toward zero. Even if that is perhaps not a real recession, it will feel like one. Greece was just the tip of the iceberg", he said.
The Americans are also going to run into crisis if the recession persists, he added.
Roubini, known as Dr. Doom and best known for predicting the U. S. housing crisis, said that the global economic meltdown is likely to make way for the second time, now, with the leading nations suffering insolvency and the banks running into losses.
Countries like Spain and Greece are under pressure to reduce spending and increase taxes for maintaining access to the capital markets.
If Governments undertake austerity measures, there is a possibility of drop in demand and recovery. A further delay in the implementation of these measures will result in high interest burdens and inflation.