Financial News
- 16 November 2012, 7:28
Eurozone Enters Recession Again
The Eurozone has officially entered recession after its collective economic output fell for the second quarter running.
Eurostat, the EU's statistics office, found the collective GDP of the single currency area contracted by 0.1% in the July to September period, following a 0.2% decline recorded in the second quarter.
The grim news plunges the 17-nation bloc into its second recession since 2009.
The wider EU avoided the same fate as it saw output rise 0.1% during the quarter, largely on the back of the Olympics-related boost in Britain.
The Office for National Statistics had previously measured the UK's third quarter GDP growth at 1%.
The eurozone's economy - worth £7.6trn - was always under pressure given that Italy and Spain had already been contracting for a year, while Greece been in recession for five years.
Germany and France, the bloc's biggest economies, could not save the group from the double-dip, even though both countries managed 0.2% growth in the third quarter.
The development is likely to intensify debate within the euro area about the effect of deep austerity on economic growth.
Millions of people across countries including Spain, Portugal, Greece and France protested against government spending cuts on Wednesday - cuts that EU policymakers say are vital to end the debt crisis.
Paul De Grauwe, an economist with the London School of Economics, said: "We are now getting into a double dip recession which is entirely self-made.
"It is a result of excessive austerity in southern countries and unwillingness in the north to do anything else," he suggested.
However, Professor Philip Booth, Editorial Director of the Institute of Economic Affairs, said: "Today's news that the eurozone is in recession will be met by a chorus of voices suggesting that the most highly indebted governments must spend and borrow more.
"This is entirely the wrong response."
The European Commission is predicting a 0.4% contraction for the eurozone as a whole for 2012 with the bloc's economy growing by just 0.1% in 2013.
what do you think?
Dave Harrison
The man says it's a result of excessive austerity in southern countries and unwillingness in the north to do anything else. I disagree. The north has the manufacturing base and the money, the south has the olives. Forcing such fundementally different economies into the one size fits all fiscal straitjacket called the Euro is a recipe for disaster. And so it is proving
stevie may
It never ceases to amaze me how many sheeple believe the lies of the state. . . Still, I suppose free thinkers with perceptions founded in intuitive initiative will always be in a minority in every age. . Like when Cornelius Agrippa denounced the Inquisition for burning witches in Medieval times, or when Ficino translated Corpus Hermeticum
stevie may
10:38am on 15/11/2012
The UK will be next. Dont believe the lies of the capitalists. We will not be free of the financial crisis till the 2030's. . Austerity for the next 20 years - whilst the bankers and politicians continue to make their immoral millions whilst we all suffer for it. . . Take capitalism and all the souless, spineless people who support it and dig them all into the soil of history. . . . . . . And then salt the earth
Paul Grice
10:43am on 15/11/2012
I think you need to start to read some other books
stevie may
11:28am on 15/11/2012
Actually Paul I'm currently reading The Three Books of Occult Philosophy by Heinrich Cornelius Agrippa - the world's greatest ever free thinker. FREE THINKER. Such a shame that appears to be beyond you. . But who knows? Maybe the limit of your perception is believing what your political masters tell you? You'll be in good company with 98% of the population.
Paul Grice
11:58am on 15/11/2012
You really are one very disillusioned individual
stevie may
12:15pm on 15/11/2012
Better than a mental slave. . . Pity
Michael Hawkins
8:50pm on 15/11/2012
98% wrong - 2 % right ? mmmmmmmmmmmmmmmmmmmmmmmm