France, Germany: Barely positive Q3 GDPs, outlook negative
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An article November 15 reported:
- France and Germany each saw GDP growth of only 0.2% in the quarter ended September 30;
- Germany’s economy is likely to show a decline in GDP in Q4, with France likely to follow Germany;
- the Eurozone economy as a whole is likely to now have ‘slid’ into recession (now confirmed); and,
- no big news, but the article says “Italy and Spain have been contracting for months and Greece ... is suffering an outright depression”.
No matter what some commentators and financial markets pundits would have one believe, it seems to me Europe and the Eurozone is going ‘worse than sideways economically’. Austerity program related strikes and social unrest is escalating in Greece and Spain - and seems about to be likely ‘in a neighbourhood near you’ in other Eurozone countries.
Even though the financial markets have dropped somewhat since the November 6 U.S. elections, I continue to see a serious disconnect between world financial markets generally and what is going on in America and Europe in particular. That is, in mid-November, 2012 the financial markets are in my opinion painting a better picture than I think they ought to be.
The article concludes with the following statement:
“But the European Central Bank’s pledge to buy euro zone government bonds in potentially unlimited amounts, should a country first seek help from the rescue fund, has diminished any threat of a euro zone calamity.”
I suggest you consider whether you agree with me that if there was ever a ‘postponement and potentially unrealistic statement’, that is it.
Topical Reference: Germany, France eke out Q3 growth, worse times to come, from Fox Business, from Reuters, Michelle Martin and Daniel Flynn, November 15, 2012 - reading time 3 minutes.