Econintersect: France surprised analysts with a quarter-to-quarter GDP growth of 0.2% in the third quater of 2012, up from a contraction of 0.1% in the second quarter. Germany matched the French growth number (+0,2%) following a second quarter grwoth of 0.3%. According to the Financial Times, however, the Eurozone outlook remains bleak in the face of the debt crisis in the region. However, some analysts were reported to have said that the unexpected result from France might be enough for the Eurozone as a unit to avoid actual recession in the third quarter. The Financial Times siad, however, that some economists are skeptical of that positive projection. The total GDP for the Eurozone is to be released later today (Thursday, 15 November).
The skepticism seems to be reinforced by the unexpectedly sharp decline in the GDP for the Netherlands, down 1.1% in the third quarter. Economists had been projecting a decline of 0.2%. And, of course, the periphery nations of Greece, Portugal and Spain are in deep and worsening recessions. Greece is in the sixth year of recession and still contracting. See GEI Opinion article today.
- German, French economies grow in 3rd quarter (James Fonyanella-Kahn, Financial Times, 15 November 2012)
- Everything You Need to Know About Greek Austerity in One Graph (John Lounsbury, GEI Opinion, 15 November 2012)