Friday, August 14, 2009

EU GDP Quarterly % Change

The EU stats agency put out it's flash report on GDP the other day. GDP came in at -0.1% for the EA16, and -0.3% for the EU27. Now generally it's a bad thing to have negative growth but in this case on the graph it looks like a pulling out of recession. The question is 2-fold... in Q3 do we see positive growth? - probably... but what about thereafter? are we going to see the so-called V shaped recovery or a W shaped recovery. The EU is quite a different breed of cat also, while the "area" as a whole may recover, the damage done in this crisis will linger in many pockets of the EU... a couple of countries have had their GDP reduced by almost a 5th... that is serious stuff. In any case for now we can at least draw some hope form the above chart that some semblance of a V shaped recovery could be underway.

-Econ Grapher

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