News / Economy

European Recession Now Longer Than 2008 Financial Crisis

European Recession Now Longer Than 2008 Financial Crisisi
X
May 15, 2013 10:32 PM
The Eurozone economy shrank more than expected in 2013, falling two tenths of one percent between January and March. The new data means the 17-nation currency bloc has now been in recession for six consecutive quarters - longer even than the deep recession that followed the global financial crisis of 2008. Mil Arcega has more.
The Eurozone economy shrank more than expected in 2013, falling two tenths of one percent between January and March.  The new data means the 17-nation currency bloc has now been in recession for six consecutive quarters - longer even than the deep recession that followed the global financial crisis of 2008.

Of the 17 nations that make up the common currency bloc - nine countries are now in recession.

While not as steep as the recession that came after the 2008 financial crisis - Commerzbank chief economist Jorg Kramer says this has been the longest.

“Usually a recession lasts only two, three, maximum four quarters.  But six quarters is a lot.  And to make the thing worse, the forward looking indicators such as the euro zone PMI, a gauge of manufacturing activity, these indicators have declined two months in a row.  Therefore we really have a problem in the euro zone,” Kramer said.

ING senior economist Carsten Brzeski says in France, Europe's second largest economy, what is now a double dip contraction for the French economy spells more trouble.

“We do see some very vague light at the end of the tunnel in Spain, in Greece, because there we do see that these structural reforms are working.  In France, nothing has happened so far,"Brzeski said.

Even Europe's powerhouse economy, Germany - just barely avoided recession, growing only one tenth of one percent between January and March this year.

With an overall population of more than half a billion people, the European Union is currently the world's largest export market.

And that means a slowdown there could hurt the U.S. economy as well.

“I mean, Europe is in a recession, China is slowing, but right now, even our own fundamentals are really lukewarm at best, so we’ve got ourselves in this pattern that we’ve seen each of the past three years where the economy starts out great the first 3 or 4 months of the year, then we tend to hit a slowdown in about the second quarter," said  Bank Rate.com's Greg Mcbride.

Analysts say government austerity measures in high debt countries such as Greece, Spain and Italy have contributed to record high unemployment within the currency union and to an  economic slowdown that some forecasters say is unlikely to lift until well into 2014.

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.