Economy 'Far too Close' to Double Dip: Roubini

Poor economic data in the US coupled with Europe's debt crisis are contributing to an increase of the risk of the US economy going through a double-dip recession, Nouriel Roubini, who predicted the 2007 financial crisis, wrote in a research paper.

Photo: Oliver Quillia for CNBC Nouriel Roubini

At best, the US economy is headed for a U-shaped recovery this year, Roubini said. That has been his prediction in recent months.

The US faces challenges in the second half, especially as fiscal stimulus measures fade, and "appears far too close to the tipping point of a double-dip recession," he said.

The euro zone is also facing an increased risk of a double-dip fall, because of its ongoing debt crisis, he wrote.

Even if the euro zone does not suffer a double dip, growth in demand will be even more limited and this will hurt the United States' potential for export growth, according to Roubini's paper. Read more