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

Three tips for breaking through bias and seeing evidence more clearly

Indonesia has a plan to deal with its plastic waste problem

Mental health during COVID-19 outbreak: who takes care of health professionals?

JADE visits Lithuanian Junior Initiatives

Mobile technology saving lives: Changing healthcare systems with simple technology solutions

‘Historic’ new Syria talks should focus on relief for war-weary civilians, says UN negotiator

Brexit: new European Parliament reaffirms wholehearted support for EU position

Scientists can lead the fight against fake news

The refugee crisis seen through the eyes of a young doctor from Turkey

New research reveals the true extent of corruption in fisheries

New tech infrastructure will help economies recover after COVID-19

Pride in health care during Pride Month: Are we ready for a dignified health care for LGBTQI+ patients?

Survivors of ISIL terror in Iraq want justice, not revenge, says head of UN investigation team

Assassinations in Ethiopia amidst regional ‘coup’ attempt, condemned by UN chief

MEPs propose more transparent legislative drafting and use of allowances

How fintech is setting Southeast Asia’s SMEs free

Europe and UN form bulwark against ‘might makes right’ worldview, EU foreign affairs chief tells Security Council

Sustainable Development Summit: ‘We must step up our efforts – now’, Guterres declares

Dangers of poor quality health care revealed ‘in all countries’: WHO report

Independent UN rights expert calls for compassion, not sanctions on Venezuela

Why press freedom should be at the top of everyone’s agenda

Draghi indirectly accuses Germany of using double standards in financial issues

Why the UN is investigating poverty in the United Kingdom

Access to health in the developped and developing world

State aid: Commission approves Luxembourg guarantee measure to further support economy in coronavirus outbreak

Breaking news on European Youth Employment: European Youth Forum Guide tackles poor quality internships!

How three US cities are using data to end homelessness

Rule of Law: European Commission refers Poland to the Court of Justice to protect judges from political control

Mobile technology facilitating social distance in the middle of a pandemic

Sydney is choking on record levels of smog – and the bushfire season is just getting started

Smokers who quit one month before surgery reap benefits: UN health agency

European Youth Forum @ European Business Summit 2015: Why interns should matter to business

The first new university in the UK for 40 years is taking a very different approach to education

Societies must unite against ‘global crisis of antisemitic hatred’, Guterres urges

Four lessons from Africa on building effective business ecosystems

Scientists have created the world’s ‘first psychopath AI’

EU growth in 2015 to be again sluggish; Can the Juncker Commission fight this out?

Education should be like everything else. An on-demand service

Friday’s Daily Brief: human rights in Sudan, sombre anniversaries for Rwanda and Nigeria, and fears of ‘chaos’ in Libya

World Health Organization calls crisis meeting over deadly Ebola outbreak in DR Congo

So, what is your favourite Sustainable Development Goal?

An alternative to the future of antimicrobial therapy

Is Haiti better prepared for disasters, nine years on from the 2010 earthquake?

Syria: ‘Deplorable’ violence in Idlib against civilians, humanitarian workers must ‘stop immediately’: UN Coordinator

Bundestag kick starts the next episode of the Greek tragedy

Over $39 million earmarked by UN-backed fund to combat effects of climate change in Nepal

Digitalization is changing banking – These 3 trends will help shape its future

Europe is ready to engage, von der Leyen tells annual EU Ambassadors’ Conference

Coronavirus: EU Civil Protection Mechanism activated for the repatriation of EU citizens

A new generation of women leaders is making waves in the Arab world

Teenagers’ career expectations narrowing to limited range of jobs, OECD PISA report finds

State aid: Commission approves €30 million Estonian measure to support Nordica in the context of the coronavirus outbreak

UN spotlights digitization of audiovisual archives to preserve human history on World Day

The European Parliament fails to really restrict the rating agencies

Islamophobia is driving more US Muslims to become politically engaged, suggests report

AIDEX 2015: Humanitarian Hero Award Winner Announced

New UN-supported farming app is cream of crop in tackling Sahel pest

State of the Energy Union: Progress made on the clean energy transition and a basis for green recovery

We have solutions to crime. We just need to scale them

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