Second Recession for Eurozone since 2009

Second recession for Eurozone

Second recession for Eurozone

The ongoing debt crisis in the eurozone dragged the bloc into what is being touted as the second eurozone recession since the year 2009 during the third quarter in spite of moderate growth in European nations France and Germany.

Eurozone recession data indicates that both the economies of European nations France and Germany saw an increase of approximately 0.2 percent in the July-September quarter but their resilience was not able to save the union from contraction as various countries like Austria, Italy, Netherlands and Spain faced shrinkage.

The debt crisis in the eurozone caused the economic output to decline by roughly 0.1 percent in the third quarter after a 0.2 percent decrease in the previous one. Together, these two periods of shrinkage pushed the eurozone into the grips of economic downturn, even though both Spain and Italy have been shrinking for the duration of approximately one year, not to mention the fact that Greece tries to deal with total depression.

Signs of Hope

A rebound seems to be far off still in the Old Continent. The debt crisis in the eurozone began in Greece almots three year ago. The effects of the crisis are still echoing all over the world and thwarting what could have been a lasting recovery.

As it was underlined by experts, even the top two economies in the eurozone were expected to give in to the effects of recession in the last three months of 2012. Economists believe that it was the final good number for European nations France and Germany in this span of time. The economy in European nations France and Germany is not expected to go back to respectable rates of growth until the middle of 2013. Germany is said to shrink during the last quarter of 2012. The economy in France is to be affected by debt crisis in the eurozone as well.

For the entire period of 2012, the European Commission views the contraction of the eurozone by approximately 0.4 percent while increasing only about 0.1 percent in the year 2013. Surveys in the business sector indicate troubled times ahead and the backlash of the public to police is increasing.

Lasting Impact

Most economists forecast that the new eurozone recession is going to extend till the end of the year and the following year, underlying at the same time that it is to remain just above the point of stagnation which verifies what the Commission has predicted. A growth of just 0.1 percent is expected to offset a contraction around 0.5 percent.

Thousands of employees protested all over Europe on the 14th of November in order to show their objection to the cuts in spending of the government. They claim that this is driving the area into a deeper state of financial ruin but Germany and the Commission are convinced that this is necessary to cure the wounds brought on by a decade-long, boom fuelled by credit.

This double-dip eurozone recession seems to be completely self-made, is what is claimed by some analysts. It happens to be the outcome of increased austerity in the southern countries together with unwillingness in the northern countries to carry out anything else.

Jay Raol

Recent Posts

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

The Covid-19 pandemic ravaging the world for more than a year has forced companies and organizations to find viable solutions to keep the business going. Most found a solution in w
17 mins ago
Meme stocks frenzy and 3 companies to follow

Meme stocks frenzy and 3 companies to follow

The doom and gloom about the stock market that has been predicted since the pandemic started has abated somewhat with the resilience shown by investors (helped by low-interest rate
56 mins ago
US Space Force allows repurposed SpaceX rocket to launch GPS satellite

US Space Force allows repurposed SpaceX rocket to launch GPS satellite

A GPS navigation satellite built by Lockheed Martin is set to ride a reused SpaceX booster on a launch from Cape Canaveral, Florida, Thursday. It will be the first time a military
9 hours ago
Disney boss says 40 pc ad revenue went to streaming sites, no plans of ad supported Disney+

Disney boss says 40 pc ad revenue went to streaming sites, no plans of ad supported Disney+

Walt Disney CEO Bob Chapel says the company’s advertising revenue for the upcoming fall television season was strong and went up by “double-digits” compared to 2019.
2 days ago
BlackRock ETFs breach $3 trillion mark in May

BlackRock ETFs breach $3 trillion mark in May

BlackRocks’ exchange-traded fund crossed $3 trillion for the first time in May, in sync with the ETF industry’s race to an all-time high of $9 trillion.
2 days ago
Flagship Pioneering, investor in Moderna raises $3.4 billion funds

Flagship Pioneering, investor in Moderna raises $3.4 billion funds

Flagship Pioneering, the bioplatform company, and the venture capital investor in Moderna, today announced that it had raised additional funding of $2.23 billion, which brings its
3 days ago