Arab Today, arab today eurozone back in recession outlook darkens
Last Updated : GMT 03:05:08
Arab Today, arab today
Arab Today, arab today

Eurozone back in recession, outlook darkens

Arab Today, arab today

Arab Today, arab today Eurozone back in recession, outlook darkens

Brussels - AFP

The eurozone tipped back into recession for the second time in just three years in the third quarter, data showed Thursday, making it even harder to solve the debt crisis eating away at the bloc\'s foundations. The 17-nation eurozone economy shrank 0.1 percent compared with the three months to June when it contracted 0.2 percent, meeting the technical definition of a recession as two consecutive quarters of decline. The figures made grim reading after massive protests Wednesday across Europe against the austerity measures governments have taken to resolve the debilitating debt crisis but which many believe only undercut growth and make the problem worse. \"The data confirmed that, despite continued growth in Germany and France, the eurozone as a whole is now officially in recession. We expect the recession to deepen markedly in the coming quarters,\" Capital Economics analysts said. With an economy on the rocks and unemployment soaring as a result, governments are caught between the need to spend more on welfare just as their revenues tank, putting even more pressure They pay a heavy political price too. In Spain, where the economy shrank 0.3 percent in the three months to September, the UGT union said the figures showed \"how the government\'s policies are sinking us in an abyss of economic depression, massive unemployment and social inequality. \"Nothing is getting better, the situation is getting worse and the government is showing a total inability to get us out of the crisis,\" said the union which helped organise major protests on Wednesday. Just in case the outlook was not dark enough, the European Central Bank warned Thursday that the eurozone faces an even deeper recession this year, with the single-currency economy to shrink 0.5 percent, rather than 0.3 percent. Growth in 2013 will be only an anaemic 0.3 percent, not the 0.6 percent expected previously, an ECB survey of forecasters showed.  \"The main factor behind the downward revision for 2012 was the prolonged uncertainty in the euro area, which was also reflected in weak economic indicators in summer and early autumn,\" the survey said. Adding to the problems, inflation -- which requires tight policy control rather than stimulus to boost growth -- will hit 2.5 percent this year, up 0.2 percentage points, it said. Thursday\'s data showed the full 27-state European Union eked out third quarter growth of 0.1 percent, again after a contraction of 0.2 percent in the second, thereby narrowly avoiding recession. Germany, Europe\'s powerhouse economy, expanded 0.2 percent in the third quarter, slowing from 0.3 percent in the second and 0.5 percent in the first, highlighting how the crisis has undercut even the strongest. France also managed 0.2 percent growth but Italy shrank 0.2 percent. French Prime Minister Jean-Marc Ayrault, visiting Berlin, said his country\'s performance was \"promising but not sufficient: economic recovery, the battle for growth are underway and must absolutely not ease up, more the opposite.\" The Economist magazine meanwhile carried a 16-page cover story to be published Friday on how France was \"the time bomb at the heart\" of the eurozone debt crisis, pointing to the frailties of its public finances and uncompetitive economy. Non-euro Britain posted strong growth of 1.0 percent, helped by the London Olympic Games but its prospects are not good either -- the Bank of England on Wednesday predicted low growth for the next three years due to the eurozone crisis, tight credit conditions and inflationary pressures. The British central bank also slashed its 2013 estimate to 1.0 percent from the 2.0 percent it gave only in August. Howard Archer of IHS Global Insight said the debt crisis problems were now clearly being felt in the traditionally stronger states such as Germany and notably, the Netherlands which slumped 1.1 percent in the quarter. \"In the face of tightening fiscal policy in many countries, high and rising unemployment and persistent serious Eurozone sovereign debt tensions,\" the eurozone will likely weaken further and shrink 0.2 percent next year, Archer warned.

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 eurozone back in recession outlook darkens Arab Today, arab today eurozone back in recession outlook darkens

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
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 Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
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