Euro Zone GDP Contracts 0.3% in Q4; All Signs Point South
Tweet
Share
E-mail
Signs of a recession in Europe are more evident than ever as data showed Wednesday growth among the 17 countries contracted 0.3 percent sequentially in the fourth quarter, versus 0.7 percent growth a year earlier.
This contraction within the euro zone is the first since the second quarter of 2009 when it declined 0.2 percent. Across all 17 countries, five to six countries are really driving down the rest. Belgium, Greece, Italy, Portugal and the Netherlands look to be slipping into a recession, while Spain is hot on their heels.
The consensus is the euro zone will experience another contraction in the current quarter as many consumers are only buying necessary items and governments are producing some of the biggest budget cuts ever.
Ahead of the release, Moody’s announced a number of downgrades citing uncertainty over the euro area's prospects for institutional reform of fiscal and economic framework was the cause. Click here for the full list.
The euro is trading up 0.1 percent on the U.S. dollar this morning.
This contraction within the euro zone is the first since the second quarter of 2009 when it declined 0.2 percent. Across all 17 countries, five to six countries are really driving down the rest. Belgium, Greece, Italy, Portugal and the Netherlands look to be slipping into a recession, while Spain is hot on their heels.
The consensus is the euro zone will experience another contraction in the current quarter as many consumers are only buying necessary items and governments are producing some of the biggest budget cuts ever.
Ahead of the release, Moody’s announced a number of downgrades citing uncertainty over the euro area's prospects for institutional reform of fiscal and economic framework was the cause. Click here for the full list.
The euro is trading up 0.1 percent on the U.S. dollar this morning.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Crude Inventory Rose 2.5 Million Barrels Last Week - EIA
- Canadian economy set for strong rebound with 3.4% Q2 expansion
- MNI Chicago PMI (Jul) 57.6 vs 56 Expected
Create E-mail Alert Related Categories
Economic Data, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
