SocGen said uncertainty about Europe's political direction was another risk to the world economy. The near-election of a far-right president in Austria this month and the U.K.'s upcoming referendum on leaving the European Union have brought politics in the region into sharper relief.
The bank said there was a 40 percent risk that an unexpected political turn in Europe could double the drag from policy uncertainty on economic growth.
"With a very busy political agenda lined up for the coming quarters, the risk of an event delivering an unexpected outcome remains high, be it the OMT (outright monetary transactions) judgment from the German Constitutional Court on June 21, the U.K. 'Brexit' referendum on June 23, Spanish election on June 26, Italian referendum in October and heading into 2017, elections in France, Germany, Netherlands and possibly Italy," the bank said.
SocGen sees growth in the 19 euro zone countries averaging 1.6 percent in 2016, in line with consensus estimates.