- On Air Program Guide
- A Blue View
- Brain Talk
- Cellar Notes
- Choral Arts Classics
- The Environment in Focus
- Gil Sandler’s Baltimore Stories
- Humanities Connection
- Maryland Morning with Sheilah Kast
- Midday with Dan Rodricks
- The Morning Economic Report
- Radio Kitchen
- The Signal
- Take Five
- Your Maryland
- Public Commentary
- War of 1812 Stories
Eurozone Slips Back Into Recession
Thu, 15 Nov 2012 18:47:00 -0500
The economic news in Europe just keeps getting worse: The eurozone, the 17 countries that use the euro currency, has slipped back into recession.
Eurostat, the European Union's statistical agency, said Thursday that the bloc contracted 0.1 percent in the third quarter; it shrank 0.2 percent in the second quarter.
A recession is often defined as two consecutive quarters of negative growth.
Here's more from the agency:
"Compared with the same quarter of the previous year, seasonally adjusted GDP fell by 0.6% in the euro area and by 0.4% in the EU27 in the third quarter of 2012, after -0.4% and -0.3% respectively in the previous quarter."
EU27 refers to the 27 states that make up the European Union. Ten of those states still use their own currencies.
The eurozone was last in recession in 2009. The bloc's economy shrank for five consecutive quarters in that period.
"This was totally expected because of austerity policies combined with world growth slowing down and a dramatic fall in activity in Germany and the Netherlands," said Steen Jakobsen, chief economist at Saxo Bank. "The last couple of days have created a new momentum for a major change in policy input, because up until this week, social tension was not part of equation. It seems like the tone has shifted dramatically."
His comments were reported by the BBC.
Still, European markets closed broadly lower on the news.
Larry Elliott, economics editor for The Guardian, warns that more economic contraction is likely.
"Greece has just signed up to another batch of spending cuts, the Spanish economy is in freefall and Germany will continue to struggle all the while world trade remains weak. European banks remain in a parlous state and would go under without life support from the European Central Bank and national governments. The first half of 2013 will be grim."
Copyright 2012 National Public Radio. To see more, visit http://www.npr.org/.
IN FOCUS TODAY
Friday, May 17, 2013 - 4:41am
More than 17,000 Baltimore students miss 20 or more days of school a year. Many of these...
Friday, May 17, 2013 - 4:37am
WYPR's Fraser Smith and Karen Hosler talk about changes to the horse racing industry in Maryland...
Thursday, May 16, 2013 - 7:00am
Attorney General Doug Gansler may run for governor in 2014, but he's moving toward a decision...