Financial and Business News

Germany, Britain and Spain will not miss recession

On Wednesday the European Commission predicted that Germany, Britain and Spain will go into recession this year. Have crushed the last hopes that Europe will avoid the severe economic crisis, writes newspaper "Financial Times". Few will better cope France and Italy. European Commission expects the economy of the entire European Unity to increase its Gross Domestic product by 1.4% this year, and 15 members of the Euro currency by 1.3%. The latest forecast made in April, indicating respectively 2% and 1.7%. The strong negative revision is to confirm that the EU's executive body began to consider their calculations fall in consumer confidence and difficult business conditions.
The Commissioner for economic and monetary policy of the European Commission, describes the economic environment of the old continent as "difficult and precarious". The doubling of the financial crisis and the price of oil for the last year and the significant adjustment of property market in some countries given their negative contribution .
The forecast for German economy is in decline - 0.2% in the third quarter and a technical recession (two consecutive quarters of negative growth), after minus 0.5% growth of GDP in the second quarter. Of Britain and Spain are expected negative growth in GDP in the third and fourth quarter.
But France and Italy, both countries with negative growth of GDP in the second quarter is expected to go to zero in Q3.
President of the European Central Bank Jean-Claude Trichet told some encouraging words. He told a European Parliament that the current episode of weak economic growth is expected to be followed by a gradual recovery and development. ECB chief acknowledged that not considered to decreases in interest rates in the euro, as it should be against the rise of labour costs in euro.

Labels: Financial News

posted by Zoritza Petrova @ 12:37 AM