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Euro-zone GDP contracts 0.3% in fourth quarter

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posted on Feb, 15 2012 @ 04:27 AM
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Marketwatch


Gross domestic product across the 17-nation euro zone contracted by 0.3% in the final three months of 2011 compared to the previous quarter the European Union statistics agency Eurostat said in a preliminary estimate released Wednesday. Economists had forecast a 0.4% contraction. GDP in the euro zone grew by 0.1% in the third quarter. Compared to the final quarter of 2010, the economy grew 0.7%. Earlier, national data showed that Germany, Europe's largest economy, shrank by a smaller-than-expected 0.2% in the fourth quarter, while France unexpectedly grew. Italy saw its GDP contract for a second consecutive quarter, meeting a widely-used definition of recession.


But don't worry, all the data coming out beats economists' forecasts, so nothing to see here folks.


taly falls back into recession as GDP shrinks


The Italian economy contracted for a second consecutive quarter in the final three months of 2011, meeting a widely-used definition of recession, official data showed Wednesday. The country's national statistics office, Istat, said preliminary gross domestic product shrank 0.7% in the fourth quarter compared to the previous three months. Third-quarter GDP shrank by 0.2%. Compared to the final quarter of 2010, Europe's third-largest economy contracted by 0.5%. Economists surveyed by Dow Jones Newswires had forecast a 0.4% quarterly contraction. Earlier, national data showed German GDP shrank less than expected in the fourth quarter, while French GDP unexpectedly grew. Preliminary euro-zone GDP data is set for release at 5 a.m. Eastern.


Europe's third largest economy is in recession.

German 4th-quarter GDP shrinks 0.2%; France grows


German gross domestic product shrank by a seasonally- and calendar-adjusted 0.2% in the fourth quarter of 2011 compared to the previous three months, the federal statistics office, Destatis, reported Wednesday. Compared to the final quarter of 2011, Europe's largest economy grew by 2%. Economists polled by Dow Jones Newswires had forecast German GDP to shrink by 0.3% on a quarterly basis and to expand 1.8% compared to the final quarter of 2010. France's statistics agency, Insee, reported GDP saw quarterly growth of 0.2% and expanded 1.7% compared to the final quarter of 2010. Economists had expected French GDP to shrink 0.1% on a quarterly basis.


This has got to be bullish. The German and French data beat forecasts though Germany's economy shrank 0.2 per cent.

Meanwhile....

Greek economy spirals down as EU forces final catharsis


The escalating brinkmanship came as fresh data showed that Greece's economy contracted by 6.8pc last year and at an accelerating 7pc rate in the last quarter, far worse than expected by the European Union (EU), the European Central Bank (ECB) and the International Monetary Fund (IMF) "troika".


Eurozone crisis: Greece 'can't take any more cuts'


The Greek people have been pushed to the limit by austerity measures demanded by the EU and IMF, the country's public order minister says.

Christos Papoutsis said Greece had made "superhuman" efforts to comply, and the people "can't take any more".

Eurozone chiefs cancelled a meeting with Greek officials earlier, demanding further cuts and reassurances.

International lenders have told Greece to make huge cuts in return for a 130bn euro ($170bn, £109bn) bailout package.


The Eurozone is not looking too good economically and yet hopium abounds. Will be interesting to see how Q1 of 2012 turns out, provided there's no major event beforehand like a Greek default.
edit on 15-2-2012 by surrealist because: (no reason given)




posted on Feb, 15 2012 @ 04:33 PM
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Aside from the fact that it's all BS numbers to begin with.. the fact that the economy shrank at all during the Christmas Quarter is never a good sign at all. Consumerism in the West almost always dictates positive growth in Q4, elsewise it's typically a prediction for economic deflation.

With the level of Austerity in European countries we should expect continued deflation until governments either halt the progress of austerity or begin to spend. It's such a large portion of economic activity that any amount not spent which was previously spent will be registered as economic contraction.



 
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