Europe sinks to the lowest point of recessionMay 15th, 2009 - 9:52 pm ICT by GD
Europe has sunk to its lowest point of recession in the first four months of 2009. Recession is commonly defined as the phenomenon of two consecutive quarters of “negative growth”. This has been due to the falling exports of Germany and also the deep fall in output in other places. The trend has been there now for about a year, and this is but the culmination.
Martin Van Vliet, an ING Bank economist said that, “Although we are nowhere near the peak in unemployment, we can safely assume that the first quarter was the worst in terms of the pace of decline.”
A UniCredit bank economist, Alexander Koch, however said that “The latest ugly GDP figures should, however, mark the trough of the current ‘Great Recession’.”
The GDP has fallen 2.5 % as compared to the end of last year. This holds for the sixteen countries belonging to the Euro zone as well as the twenty seven countries of the European Union bloc.
After the unification of Germany in 1990 this has been the greatest fall ever in any quarter. But Germany is not alone. The French GDP fell too. Official figures reveal that French GDP fell by 1.2%. The national statistics agency of France has revealed that France was not spared the hit of the global recession. Manufacturing and exports have continued to suffer in keeping with the trend of the global recession.
Again, Italy too saw the sharpest dip in almost 30 years, a fall of 2.4%, according to the official sources.
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