Thursday, August 14, 2014

The euro zone stagnated in the second quarter and the whole … – RTVE

The euro zone stagnated in the second quarter and the whole … – RTVE

RTVE.es

The economy Eurozone stalled between April and June from the first quarter of this year, hampered by the slowdown in the German motor (0.2% quarter contracted) and France that repeated zero growth the beginning of the year, according to preliminary data released Thursday by Eurostat. To this is added the entry in a New technical recession in Italy , the third largest economy in the euro bloc.

Between January and March, all the 18 countries of the euro grew by 0.2% and analysts were betting on repeat such progress in the second installment of the year

Of the twenty-eight members of the bloc, Four are in technical recession . Greece and Cyprus join now Italy and Romania , while Estonia and Finland out of the situation.

In contrast, the whole EU itself rebounded, although only 0.2% quarter.

If the second quarter compared with the same period last year , the GDP growth of euro area was 0.7% , while the EU increased by 1.2% . Both figures are below the annual growth in the first quarter (which was 0.9% and 1.4%, respectively).



Growth Spanish quarterly tripled the EU

According to Eurostat data collecting developed by the INE, Spain grew 0.6% between the first and second quarters and 1.2% over the second quarter of 2013 Thus, the annual progress of Spain equaled the average growth in the EU and almost doubled the growth in the euro zone . With the comparison of the quarterly data , the advance of Spanish GDP in the second quarter tripled the registered joint EU .

Only four EU countries recorded increases above its quarterly Spanish GDP: Latvia (1%), Hungary (0.8%), the UK and Lithuania (both grew 0.7%). Poland, Portugal and Slovakia had a growth equal to Spanish (0.6%)

Other block four countries recorded a contraction of GDP in the second quarter. Germany ( -0.2%), Italy (-0.2%), Cyprus (-0.3) and Romania (-1%).

The economies of Bulgaria, Estonia and the Netherlands increased by 0.5%. Austria and Sweden increased its GDP by 0.2%, and Belgium and Finland grew by 0.1%. Czech Republic and France experienced no quarterly variation in the size of its economy.



Brussels insists on reforms

Indeed, the spokesman for the European Commission, Michael Jennings has been exemplified Thursday at Spain and Portugal, which -HA destacado- grow more than other countries a slower pace of reforms.

“We have always stressed the fragile nature of the recovery and maintain the higher risk for it’s indulgence , “said Jennings at a news conference.

Confronting critics claiming Europe to relax austerity and bet to invest to stimulate growth, the EU executive urged keep the path of reforms despite the slowdown Recovery economic.

Sale of the annual forecast of economists

The publication of these data coincided with the downgrade growth forecasts for the area euro by the 59 experts consulted each quarter by the European Central Bank (ECB).

In the survey on their forecasts for the third quarter which was published on Thursday, the panel of economists has agreed that the economy of the euro grow this year a tenth less than expected so far (limit GDP growth to 1%), while they have stable the outlook for 2015 , when they expect the eurozone grow by 1.5%.

“According to respondents, the risks are mainly related to the impact of geopolitical tensions as Ukraine and the Middle East as well as lower external demand, mainly from China and the USA, “the ECB said in its monthly bulletin August.

Despite these downside risks, experts consulted by the ECB have improved a tenth up to the 1.8% -. their growth expectations for the eurozone longer term

As for the evolution of prices, analysts believe that the disinflationary environment will have a greater impact than expected the previous quarter and have lowered their forecasts for inflation in the euro zone, a rate which closed last July at 0.4%.

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