EU is officially in recession

Press conference by Olli Rehn, Vice-President of the EC, on the autumn economic forecasts for 2012-2014. (EC Audiovisual Services).

Press conference by Olli Rehn, Vice-President of the EC, on the autumn economic forecasts for 2012-2014. (EC Audiovisual Services).

Eurostat, the statistical service of the European Union, confirmed yesterday with its regular third estimate, that during the last quarter of 2012 the Gross Domestic Product fell by 0.6% in the Euro area and by 0.5% in the EU27, in comparison with the previous three-month period of the same year. Eurostat’s third regular GDP estimation is done approximately 100 days (t+100) after the end of each quarter. Earlier estimates of GDP growth in each quarter are compiled at about t+45 days (GDP flash) and t+65 days (second GDP release, including breakdowns by expenditure components and gross value added by industries).

GDP developments in the last quarter of 2012 in comparison with the same period of 2011 were even more discouraging. According to the same source, “compared with the same quarter of the previous year, seasonally adjusted GDP fell by 0.9% in the euro area and by 0.6% in the EU-27 in the fourth quarter of 2012, after -0.7% and -0.4% respectively in the previous quarter”.

Unfortunately there is strong evidence that the negative developments in the European economy towards the end of 2012 continue well into the current year. Apart from the €-coin index which estimates that Eurozone’s GDP also fell in the first quarter of 2013, the governor of the European Central Bank, in his regular monthly interview on Thursday appeared also pessimistic.

Mario Draghi, while presenting ECB’s economic analysis for the present conjuncture said: “Recent data and indicators confirm that the economic weakness extended into the early part of the year (2013)…This economic outlook for the euro area remains subject to downside risks. The risks include the possibility of even weaker than expected domestic demand and slow or insufficient implementation of structural reforms in the euro area. These factors have the potential to dampen the improvement in confidence and thereby delay the recovery”.

Coming back to statistics among member states for which data on GDP growth are available for the fourth quarter of 2012, increases were recorded in Luxembourg (1.6 %), Latvia (+1.4%), Estonia (+0.9 %) and Lithuania (+0.7 %) compared with the previous quarter, while Portugal (-1.8 %), Cyprus and Slovenia (both -1.0 %) suffered the largest GDP losses.

Concerning the components of GDP, losses were recorded all across the board. According to Eurostat, “during the fourth quarter of 2012, household final consumption expenditure fell by 0.5% in the euro area and by 0.3% in the EU27 (after -0.2% and -0.1% respectively in the previous quarter). Gross fixed capital formation dropped by 1.2% in the euro area and by 1.0% in the EU27 (after -0.8% and -0.7%). Exports decreased by 0.8% in the euro area and 0.9% in the EU27 (after +0.9% in both zones). Imports declined by 0.9% in both zones (after +0.1% in the euro area and 0.0% in the EU27)”.

 

 

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Migration crisis will keep deteriorating as common EU political will is simply not there

As Libya talks resume in Geneva, UN negotiator seeks to overcome sticking points

COP21 Breaking News_12 December: 195 countries adopt the First Universal Climate Agreement

IMF: Sorry Greece, Ireland, Portugal we were wrong!

Google succumbs unconditionally to EU’s “right to be forgotten” ruling

Weak growth of G20 international merchandise trade in third quarter of 2018

Livelihoods of millions in East and Southeast Asia at risk from Swine Fever epidemic

EU seeks foreign support on 5G from Mobile World Congress 2015 as the “digital gold rush” begins

Impact Investment needs global standards and better measurement

Restore land to save the planet, boost the economy, says head of UN body combating desertification

Mergers: Commission clears Vodafone’s acquisition of Liberty Global’s cable business in Czechia, Germany, Hungary and Romania, subject to conditions

‘Everyone must be on board’ for peace in Central African Republic: UN’s Lacroix

UN committed to helping Haiti build better future, says Guterres, marking 10-year anniversary of devastating earthquake

Gender equality: an issue much talked about but less acted upon

From philanthropy to profit: how clean energy is kickstarting sustainable development in East Africa

Entrepreneurship’s key to success showcased by a serial young entrepreneur

Project Manager – 2024

This simple digital solution could streamline global travel and boost trade during COVID – here’s how

European Citizens’ Initiative: A game of much publicity and one big lie

The eyes of Brazil and the world turn to the largest rainforest and largest biodiversity reserve on Earth #PrayForAmazonia.

The US and EU decisively oppose Erdogan’s plans for Turkey and beyond

This US city sends mental health workers instead of police to non-criminal emergency calls

INTERVIEW: ‘Defend the people, not the States’, says outgoing UN human rights chief

These are the top countries for travel and tourism in 2019

The smartest cyber investment is collective action. Here’s why

US and China in painstaking efforts to conclude trade talks

Digital was our lifeline in 2020, and we are more positive about it since

‘Don’t forget Madagascar’s children’, UN appeals for long-term help as emergency worsens

The US Congress and European Parliament vote are TTIP’s 10th round’s lucky cards

Wednesday’s Daily Brief: Diplomacy for Peace Day, #VaccinesWork, the cost of war on Afghans, tech and well-being

Climate change hits the poor hardest. Mozambique’s cyclones prove it

EU commits €9 million in humanitarian aid for the most vulnerable families in Myanmar

Republic of Korea President proposes DMZ as future ‘peace and cooperation district’ on Peninsula

UN leads bid for cheaper insulin, expanding access for diabetics worldwide

Europe’s dirty air kills 400,000 people every year

Commission’s report shows that targeted investment and robust digital policies boost Member States’ performance

The gender gap of medicine in 2018

Telemedicine during the pandemic: its benefits and limitations

Telemedicine can be a COVID-19 game-changer. Here’s how

Trade MEPs promise thorough scrutiny of the EU-UK agreement

Visa liberalisation: Commission reports on fulfilment of visa-free requirements by Western Balkans and Eastern Partnership countries

Tomorrow’s UK general election: Will Tories win majority to shoot an abrupt Brexit or a hung parliament will prolong January’s exit to 2050?

This man ran across the USA to raise awareness of plastic pollution

5 ways to fast-track the transition to a carbon neutral world

Don’t let smoking steal life’s breathtaking moments, urges UN health agency

Security Council marks transition from 15 years of UN peacekeeping in Haiti

Latest leaked TTIP document confirms EU sovereignty may be under threat

Safer roads: More life-saving technology to be mandatory in vehicles

Monday’s Daily Brief: ‘Horror’ at Notre Dame fire disaster, Yemen still bleeding, measles now ‘global crisis’

COVID-19: What you need to know about the coronavirus pandemic on 4 January

Somalia advancing towards ‘inclusive and peaceful future’ for women, deputy UN chief

Can Obama attract Iran close to the US sphere of influence?

Egypt is building one of the world’s largest solar parks

These are the cities with the biggest carbon footprints

Entrepreneurial leadership: what does it take to become a leader?

From low-earth orbit, ‘envoys’ of humanity join UN space forum

COP21 Breaking News_10 December: the final sprint of the Final Agreement Negotiations

How studying genetics and lifestyle can shape a healthier MENA region

Zero carbon by 2050 is possible. Here is what we need to do

Myanmar military target civilians in deadly helicopter attack, UN rights office issues war crimes warning

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s