Arab Today, arab today doubledip recession setting in across eurozone
Last Updated : GMT 14:03:39
Arab Today, arab today
Arab Today, arab today

Double-dip recession setting in across eurozone

Arab Today, arab today

Arab Today, arab today Double-dip recession setting in across eurozone

Brussels - AFP

The debt crisis will drag the eurozone into a long-warned double-dip recession this year, pulling down most neighbouring non-euro economies in its wake, the EU said Thursday. Fresh after a decision to mount a new 237-billion-euro ($310 billion) bailout of Greece, there was more bad news for the currency area when updated EU data predicted a 0.3-percent contraction in GDP throughout 2012, compared with a forecast in November of 0.5-percent growth for this year. \"The unexpected stalling of the recovery in late 2011 is set to extend into the first two quarters of 2012,\" the European Commission said Thursday although it stressed it saw a \"mild recession with signs of stabilisation.\" Three years after the collapse of US mortgage markets plunged the world into a brutal downturn, the Commission said negative loops \"between weak sovereign debtors, fragile financial markets and a slowing real economy do not yet appear to have been broken.\" A 0.8-percent downward revision in the space of just over three months underlined the importance of forecasting for the likes of Greece, where wide variations were presented to finance ministers this week as they took decisions on long-term debt sustainability in that country. Comments from close watchers of EU economic policy were swift and harsh. \"The banking system, at least in the euro area, remains on life support; the politics in the euro area remain as fraught as ever and the social fabric is being stretched to its limit,\" said Sony Kapoor of Brussels-based economic consultancy Re-Define. Announcing the numbers, European Union Economy Commissioner Olli Rehn put the figures into context by comparing the eurozone prospects to overall global growth which he expected to be 4.3 percent this year. Rehn also admitted that the turnaround anticipated later in the year \"remains to be confirmed in coming months and will depend on policy decisions taken\" by governments. Unusually, the EU executive fed in data from all 27 EU states -- not just the seven biggest -- in a bid to make its forecasts more robust. The European Commission said \"modest growth is predicted to return in the second half of the year,\" with inflation revised \"slightly upwards\" to 2.1 percent across the 17-state euro currency area, mainly due to energy costs and \"increases in indirect taxes.\" A fifth year of recession in Greece is expected by Brussels to result in a 4.4-percent contraction of gross domestic product in 2012, much worse than the 2.8 percent downturn previously estimated. The Greek government is now rushing to nail down a 107-billion-euro write-down of private debt and fresh loans of 130 billion euros or more from international backers.  In Athens, lawmakers focused Thursday on a crucial debate to approve bills to restructure the country\'s massive debt of 350 billion euros. On financial markets European stocks wavered Thursday, with traders welcoming strong German confidence data but cautious about the prospects of Greece overcoming its debt problems. The euro firmed against the dollar and yen. Meanwhile, the EU Commission warned that Italy, which carries the eurozone\'s biggest debt burden of about 1.3 trillion euros, faces a recession that will cut its output by 1.3 percent in 2012. The last official forecast from the government in Rome was for a 0.4-percent fall, although the Bank of Italy last month tipped between 1.2 percent and 1.5 percent, while the IMF predicted an even worse result, a 2.2-percent drop. There will be a 1.0-percent recession in Spain, according to the data, but Germany\'s economy would grow 0.6 percent and that of France 0.4 percent. Outside the eurozone, Poland maintains its position as a powerhouse economy, with 2.5-percent growth now predicted -- dimmed compared to stellar performance prior to the debt crisis, but still way out in front. \"One essential reason is Poland has been benefitting from the engine of the German economy, it has had a positive spillover,\" Rehn said, also crediting a large influx of EU funding for Warsaw. The economy across the United Kingdom, which has its own lopsided patterns, was meanwhile tipped to grow by 0.6 percent. \"Although growth has stalled, we are seeing signs of stabilisation,\" Rehn said highlighting \"easing\" stress in financial markets. The Commission cited a \"less supportive\" global economy \"weighing on net exports\" as well as low business and consumer confidence, although the forecast maintained that \"a credit crunch has been avoided.\" In a clear sign of structural divergences, the Commission noted that \"Greece, Portugal and Spain account for 95 percent of the rise in unemployment in the EU since late 2010.\"  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today doubledip recession setting in across eurozone Arab Today, arab today doubledip recession setting in across eurozone

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom, China plunges into snow biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom, China plunges into snow biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday