The Eurozone has officially slipped into a double-dip recession for the second time in four years as trade slumped and government spending fell due to austerity.
Eurostat affirmed that Gross domestic product in the 17-nation currency bloc fell by 0.1% in the third quarter from the previous three months, when it fell 0.2%. Today’s announcement confirms the initial estimate published on the 15th of November.
The situation in the region has seen some improvement over the past few months with European governments finally beginning to take action to curb the debt crisis. Last week they eased the terms on emergency aid for Greece and have taken action to bailout Spain’s struggling banks.
“Greece will continue to go deeper into depression next year and possibly the year after that,” Megan Greene, director of European economics at Roubini Global Economics LLC, said in an interview on Bloomberg Radio on Dec. 4. “The troika will be willing to just throw money at Greece until at least we’ve had the German elections and Spain and Italy by then will have asked for support from the bailout funds and the ECB.”
In the wider European Union GDP as a whole edged up by 0.1% with the UK, Germany, France and the Scandinavian nations keeping it above negative figures. The German economy rose by 0.2% but was down on the second quarter’s figure of 0.3%. France’s economy posted a surprising figure of 0.2% whilst Italy’s fell by 0.2%. Elsewhere the GDP figures for Portugal, Austria, Cyprus and the Netherlands all fell by 0.3%.
Euro-area finance ministers meet Dec. 13 to decide on releasing Greece’s next aid payment and possibly wrap up bailout talks with Cyprus, the fifth country in the single-currency bloc to seek international aid since the crisis erupted.
The Pound to Euro exchange rate is currently trading at 1.2318
The Pound to US Dollar exchange rate is currently trading at 1.6114
The Pound to Australian Dollar exchange rate is currently trading at 1.5367
The Euro to US Dollar exchange rate is currently trading at 1.3080
The Euro to Pound exchange rate is currently trading at 0.8116
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