Spain Exits Recession, Job Losses Ease: Central Bank

Spain escaped from its two-year recession in the third quarter of this year with timid growth as job destruction eased, the country’s central bank said on Wednesday.

After nine straight quarters of contraction in the second trough of a double-dip recession, the euro zone’s fourth-biggest economy grew by 0.1 percent, the Bank of Spain said in a report.

The rate at which jobs were being destroyed in the recession, which has thrown millions out of work and increased poverty, eased to its slowest rate since the start of the crisis in 2008, it added.

“In the third quarter, the Spanish economy extended the gradual improvement that it has been observing since the start of the year,” the bank wrote.

Wednesday’s data came in an economic climate “characterized by a certain easing of financial tensions and improving confidence”.

for more go to: http://www.globalpost.com/dispatch/news/afp/131023/spain-exits-recession-job-losses-ease-central-bank

image from http://www.rte.ie

Germany’s Imports Rebound in January

U.S. exports may be ready to recover after a downturn in the Fall.  German imports have rebounded in January 2013. There is hope that increased trade will shrink Germany’s trade surplus. From October 2012 to December 2012, Germany’s economy shrank by 0.6%.

 

German domestic demand is anticipated to play a large role in boosting the Germany and Eurozone economy this year. Since currently borrowing costs for businesses are purposefully low, perhaps German demand will increase.

Consequences of the Euro-Zone’s Declining Economy

As unemployment rises, another quarter of recession looms for the European economy. On Friday, February 21 some nations reported missing their government deficit targets despite many rounds of spending cuts. The region’s economy is expected to grow later this year, but during the last three years the 17 country union has been the slumps. The Obama administration is concerned about the effect of  the European Union’s declining economy on the United States. In his State of the Union Address at the beginning of February 2013, President Obama mentioned  free-trade talks with the European Union in an effort to promote American and European trade. The key question is whether such an arrangement will be primarily pursued to address trade issues or whether its main purpose is the foundation of a political counterbalance to China.

Danger of the Euro-Zone’s Declining Economy

As unemployment rises, another quarter of recession may occur in the European economy. On Friday, February 21 some European nations forecasted missing their government deficit targets despite many rounds of spending cuts. The region’s economy is expected to grow later this year, but the 17 country union has spent the last three years in the slumps.

 

The Obama administration worries how the European Union’s declining economy will affect the United States.  President Obama hopes that talks of free-trade with the European Union will promote American and European trade. A key question is whether such an agreement is mainly focused on trade or on developing a political counterbalance to China.

Recession Deepens in Spain

An article in The New York Times highlights how Spain’s economy shrank in the final months of 2012 at the fastest pace since its recession began, data showed on Wednesday, pummelled by falling domestic demand and with no return to growth on the horizon.

The Bank of Spain said gross domestic product (GDP) contracted 0.6 percent in the fourth quarter from the third, compared to a drop of 0.3 percent in the July to September period.

The forecast in the central bank’s monthly economic report precedes preliminary growth data from the National Statistics Institute on January 30.

“These numbers are slightly better than we thought, but it is a confirmation the economy is in a very bad state,” said Silvio Peruzzo, economist at Nomura.

For more information visit: http://www.nytimes.com/reuters/2013/01/23/business/23reuters-spain-growth.html?ref=global