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The eurozone economy is to contract by even more than previously thought in 2012, according to forecasters at Standard Chartered bank.Economists said the nations that use the single euro currency will see their economies shrink by 1.5% next year, while the United Kingdom, which recently opted out of a new European Union fiscal accord, will see its economy decline by 1.3%.

Analysts at Standard Chartered had previously predicted growth of 0.6% in the UK economy.

While it expects European economies to contract, the bank predicted the world economy as a whole would grow by 2.2% next year.

Standard Chartered said Asia would drive the global economies recovery, despite a predicted slowdown in growth from 7.3% in 2011 to 6.5% in 2012.

“It will be a recovery made in the East and felt in the West. If ever one needed to illustrate the shift in the balance of power, this is it,” said chief economist Gerard Lyons.

Standard Chartered economist Thomas Costerg said Europe’s economy would suffer a triple shock; consumers and businesses will lose confidence and spend less, banks will tighten credit and national governments are being forced to cut budgets.

The result of this triple shock will be a recession throughout Europe.

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