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Thread: Eurozone's exit from recession

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    Politics.ie Member Ramon21's Avatar
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    Default Eurozone's exit from recession

    The eurozone has emerged from recession in the third quarter, boosted by strong growth in Germany, leaving Britain languishing in its longest downturn in history.

    The eurozone, which is made up of 16 countries that use the euro, reported that gross domestic product (GDP) — a key measure of economic health - grew by 0.4 per cent in the three months to September. The 27-nation European Union, which is home to half a billion people, also reported growth of 0.2 per cent in the third quarter.

    Germany, the zone's biggest economy, confirmed its recovery, after exiting recession in the second quarter, when it said that GDP increased by 0.7 per cent in the third quarter. France also underlined its recovery, with 0.3 per cent growth.

    Italy also emerged from recession today, with quarterly growth of 0.6 per cent following five quarters of contraction along with the Netherlands. However, Spain's economy continued to contract, shrinking 0.3 per cent in the third quarter.
    Still, even as the investor consensus ravages the euro, it's worth remembering that the same herd instinct not long ago was pronouncing last rites for the dollar. Last year, as China's central bank chief called for a new global currency and Russian central bankers dumped greenbacks to buy euros, many saw the dollar's decline as inevitable. Now, the dollar is riding high, and the euro looks bedraggled.

    "Views might change very quickly"

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    Politics.ie Member TradCat's Avatar
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    If this takes interest rates will rise and Ireland will sink.

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    Politics.ie Member Ramon21's Avatar
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    Quote Originally Posted by TradCat View Post
    If this takes interest rates will rise and Ireland will sink.
    The interest rates will likely stay the same for atleast 6-9 more months.
    Still, even as the investor consensus ravages the euro, it's worth remembering that the same herd instinct not long ago was pronouncing last rites for the dollar. Last year, as China's central bank chief called for a new global currency and Russian central bankers dumped greenbacks to buy euros, many saw the dollar's decline as inevitable. Now, the dollar is riding high, and the euro looks bedraggled.

    "Views might change very quickly"

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    Its all crap. Massive government stimulus and collapsing imports from collapsing consumption affect GDP figures

    Y=C+I+G+X-M

    When the stimulus runs out the economies will shrink again.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Still, I'd rather their slump than our depression.

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    Quote Originally Posted by eyeswideopen View Post
    Still, I'd rather their slump than our depression.
    Ah yeah, even Iceland is faring better!. But there will be no worries about rate increases. They still have deflation and them stimulus programs will end soon.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Politics.ie Member jcdf's Avatar
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    Quote Originally Posted by TradCat View Post
    If this takes interest rates will rise and Ireland will sink.
    This is ok! The faster we hit the bottom the quicker we will rise.
    Quote Originally Posted by Cassandra Syndrome View Post
    Its all crap. Massive government stimulus and collapsing imports from collapsing consumption affect GDP figures

    Y=C+I+G+X-M

    When the stimulus runs out the economies will shrink again.
    They will not shrink by the same degree though, so this is good.
    Economic Left/Right: -0.50
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    Quote Originally Posted by jcdf View Post
    This is ok! The faster we hit the bottom the quicker we will rise.

    They will not shrink by the same degree though, so this is good.
    The fundementals are wrong though. Thats why I am always on here giving out stink! Its like the minor growth that occured in 1930 and 1931 in the US under the Hoover administration before GDP collapsed 25% up until 1933. It took a World War to end the depression.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Quote Originally Posted by Cassandra Syndrome View Post
    The fundementals are wrong though. Thats why I am always on here giving out stink! Its like the minor growth that occured in 1930 and 1931 in the US under the Hoover administration before GDP collapsed 25% up until 1933. It took a World War to end the depression.

    The way things are happening here maybe we'll have a civil war and like WW2 we'll cop on to ourselves and start a proper recovery.

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    Politics.ie Member jcdf's Avatar
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    Quote Originally Posted by Cassandra Syndrome View Post
    The fundementals are wrong though. Thats why I am always on here giving out stink! Its like the minor growth that occured in 1930 and 1931 in the US under the Hoover administration before GDP collapsed 25% up until 1933. It took a World War to end the depression.
    I do not think there is going to be a World War. Perhaps the World economy will just come to mimics Japans over the last two decades. Zero growth becomes the natural norm and people adjust their expectations to match.
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