The Bank for International Settlements (BIS) has said the weak outlook for the global economy has driven down the price of risky assets and could intensify the sovereign debt crisis in Europe.

After reporting a steady pace of recovery growth in 2010, many developed economies experienced a significant slowdown in growth during the first half of 2011, as high unemployment persisted and confidence in the economy waned. Data from Eurostat shows that gross domestic product (GDP) in the euro area fell