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Sept 5 - The growth in euro zone's gross domestic product may come under pressure as corporates ease the pace of investments due to higher borrowing costs, HSBC economists said on Tuesday.HSBC, however, forecast a"smaller impact" to the British economy as a large chunk of corporate debt is now accounted for by 'bounce back' loans - government-guaranteed programs to help struggling small businesses hit by COVID-19 era lockdowns - fixed at the rate of 2.5%.
"The impact has been delayed because, while debt costs are rising, firms are also earning more interest on their deposits which ballooned as a result of subsidies during the COVID-19 pandemic," said Chris Hare, the lead senior economist at HSBC.
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