The European zone has gone back into a recession for the second time in four years, as the debt-ridden activity in Southern Europe economies weighed on output across Europe.
Europe's first gross domestic product for three months ended in September showed a contraction of 0.1% in Europe, after a decline of 0.2%, in the second quarter. This confirms that Europe is now back in a recession.
Some efforts have been made, to reduce debt, but more unemployment has occurred.
The leading economies in Europe are France and Germany, and although they have managed to lengthen modest growth, Germany's economic expansion has slowed to 0.2% in the third quarter, from 0.3% in the second quarter.
France had a posting growth of 0.2%, even with expectations of a flat expectations. Italy, however, has remained stuck, in the recession, and there are worries that this country may end up very poor.
ING economist Martin Van Vilet stated, "Today's GDP figures clearly demonstrate that the eurozone economy as a whole is in desperate need of macroeconomic stimulus. With policy makers seemingly reluctant to engineer a coordinated pull-back from fiscal austerity, more monetary stimulus and a weaker currency is likely to be needed to put the eurozone back on a path of sustained growth.
Pressure on the prices in Europe are easing. Data showed that yearly inflation in October was 2.5%, compared to 2.6% in September.
Europe's current policy would not allow a significant economic recovery, in a short period of time. This is because their inability to grow may cause Europe not to be solvent or wealthy.
The European Union has avoided recession in the quarter, registering growth of 0.1%, after a decline 0.2% the previous quarter. Europe was helped by the United Kingdom thanks to the London Olympics.
Analysis: The author of this article, Mark Thompson wrote this article to inform us about Europe's economy, in the present, and how it may be affected, in the near or later future. The author wasn't biased at all. All he talked about was one thing-Europe's economy. There weren't sides or anything.
I don't like hearing about recessions because so many innocent people are affected by them. Imagine how many people are unemployed now. These poor people will have no work, and since they won't earn money, they might lose their homes or anything else important to them. Those whom will keep their jobs better appreciate them because unlike most people, they still have a way to earn money and to provide for their families. I really hope that too many people don't suffer, and I hope that Europe's economy recovers soon.
Source: http://money.cnn.com/2012/11/15/news/economy/eurozone-recession/index.html?hpt=ieu_c2
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