Thursday, November 15, 2012

The EU is in its Second Recession Since 2009

Color me unsurprised:

Economic output in the euro zone fell 0.1 percent in the quarter, following a 0.2-percent drop in the second quarter. Those two quarters of contraction put the euro zone's 9.4 trillion euro ($12 trillion) economy in recession, although Italy and Spain have been contracting for a year already and Greece is suffering an outright depression. A rebound in Europe is still far off. The debt crisis that began in Greece in late 2009is still reverberating around the globe and holding back a lasting recovery from the Great Recession of 2008/2009 in much of the world. "That was the last good number Germany for the time being," said Joerg Kraemer, chief economist at Commerzbank. "The business climate ... has caved in." Most economists expect Germany to contract in the fourth quarter for the first time since the end of 2011. Where Germany goes, France is likely to follow and economists expect its economy to shrink in the October-to-December period.

No comments: