Skip to main content

European economies slide back into recession

The 17-nation eurozone economy is in recession for the second time in four years as governments imposed tougher budget cuts and leaders struggled to contain the debt crisis that broke out in October 2009.

Gross domestic product slipped 0.1 percent in the third quarter after a 0.2 percent decline in the previous three months, the European Union’s statistics office in Luxembourg said today. The result matched the median forecast in a Bloomberg News survey of 44 economists as small growth in Germany and France was outweighed by contractions elsewhere.

Europe’s economic malaise is deepening as governments across the region impose budget cuts to narrow their fiscal deficits. Spain and Cyprus this year joined the list of countries seeking external aid, following Greece, Portugal and Ireland. Unions across the region have held protests against austerity measures.

“Overall I think it’s remarkable that we haven’t seen so far in the last year a stronger decrease in economic activity considering the strength of the eurozone debt crisis,” Alexander Krueger, chief economist at Bankhaus Lampe in Dusseldorf, told Bloomberg. “Stopping the downward trend is the story for the first half of next year.”

In Germany, Europe’s largest economy, GDP rose 0.2 percent after a 0.3 percent gain in the previous three months. The French economy expanded 0.2 percent, rebounding from a 0.1 percent contraction in the second quarter. Italy and Spain contracted 0.2 percent and 0.3 percent, respectively. In the 27-country EU, GDP rose 0.1 percent.

Greece and Portugal published third-quarter GDP figures on Wednesday that showed the Greek economy contracting for a 17th straight quarter and the Portuguese economy completing its second year in recession. By the end of this year Greek output will have dropped by a fifth since it entered its recession in 2008.

Bloomberg said Europe’s economic gloom contrasts with signs of green shoots in the United States, where housing demand is strengthening and companies are hiring, and China, where factory output and retail sales are accelerating. The two countries are responsible for a third of the world economy.

Click here for the full report.

Related

1_CMTA.KAWECKI

CMTA Names Managing Director

The trade organization promoted Jen Kawecki, who will help grow its membership and support the Hartford Boat Show.

1_FALLBOATSHOW

AIM Announces Connecticut Fall Boat Show

The show, organized by Active Interest Media, will kick off Oct. 7 in Branford at Bruce & Johnsons Marina.

1_MARINEMAX.IBY

MarineMax to Acquire IGY Marinas

The $480 million transaction gives the company a collection of marina assets and a yacht management platform in key yachting destinations around the world.

1_BRP

BRP Launches Multiple New Products

The company debuted Rotax outboards, new Manitou and Alumacraft models and an electric hydrofoil board.

1_EVERGLADES

Everglades Hires Director

Caroline Cozier will lead the company’s sales initiatives in the Northeast, Mid-Atlantic, Great Lakes and Canada.

1_DEALEROUTLOOK

Three Great Ways To Tick-Off Your Customers

As boat sales normalize, it’s essential to keep the customers you have. Here’s what not to do.

1_CHAPARRAL

Buck Pegg Turns 80

Flags were flown at the Georgia State and U.S capitols in honor of the Chapparal Boats founder’s birthday.