The EU
February 15, 2012 – 6:16 pm
The European-zone GDP for the fourth quarter shrank .3%. This result for the 17 nation EU was slightly better than expected. Germany’s economy, the largest by a wide margin, shrank .2%, while Italy, the third largest economy, fell .7%. Finally, the worst economy, Greece shrank more than expected at .7%.
Recently, economic statistics in the EU have shown improvement which has urged some economists to suggest that the EU is not going to fall into a recession. The classic definition of a recession is two quarters in a row of shrinkage and this most recent fourth quarter report is the first contraction since the big recession a few years ago.
Although there is doubt about the EU falling into a recession it is going to feel like one. There are a lot of unknowns still plaguing Europe. It is far too early to say they won’t fall into a recession, but the statistics are improving.
Good Trading,
Steve Peasley
