Econintersect: The Eurozone (the 17-nation bloc that uses the euro as its common currency) is officially back in recession with the third quarter composite GDP showing a 0.1% quarter-to-quarter decline. This is the second quarter in a row that GDP growth was negative (second quarter was -0.2%) and the third negative print in the last four quarters. The only quarter not showing a negative number, first quarter 2012, barely escaped a negative value coming in at 0.0%.
The entire 27-nation European Union avoided the recession label with GDP growth of 0.1% quarter-over-quarter. This was a rebound from -0.2% in the second quarter and the only quarter in the last four in which the Eurozone and the larger EU differed in GDP growth.
The Eurostat report dashed the hopes of a few that positive GDP growth for both France and Germany in the third quarter would be enough to hold the entire Eurozone at zero or even positive growth. See GEI News report earlier today. See also the GEI Opinion article today that discusses the lack of success that Greek austerity has had in turning that country's economic contraction around. That article mentioned that the European Commission (EC) was forecasting an expansion in 2013. A Reuters article just out from CNBC says that forecast is now looking tenuous as the EC has revised its 2013 growth forecast down to 0.1% for the entire year.
Here is the full data table from Eurostat:
Click on sections of table for larger image.
- Eurostat Latest News Releases (European Commission webpage)
- Eurozone falls back into recession (James Fontanella-Kahn, Financial Times, 15 November 2012)
- Germany, France GDPs Positive in Q3 2912, Barely (GEI News, 15 November 2012)
- Everything You Need to Know About Greek Austerity in One Graph (John Lounsbury, GEI Opinion, 15 November 2012)
- Euro Zone Slips Into Second recession Since 2009 (Reuters, CNBC, 15 November 2012)