Eurozone officially in recession

The Eurozone is officially in a recession today. Everybody thought this would happen and now it’s officially. The EU came with figures today and they are not satisfying. The economy shrank with 0.2 percent and this figure shows that the Eurozone is in a recession.

This figure is about the third quarter of this year so it’s shrank when we compare it with the last quarter.
Also the second quarter the economy shrank and technically that will say that we are in a recession now.
This figure isn’t a surprise because Germany and Italy, 2 big countries in Europe, already came with their figures and they weren’t satisfying at all. When two big countries their economy is bad they pull the rest of Europe with them.

It’s the first recession Europe has to deal with since we came with the Euro but analysts think the worse has to come for Europe. They say we will have bad figures till the third quarter of 2009 so we got a difficult year to deal with and we haven’t seen the impact of the unemployment and the financial crisis.

Especially the car industry got bad figures. The car industry is the biggest in Europe and very important. Their figures aren’t satisfying, they show that the sales went down with 14 percent.

Also the export is important and especially for Germany, they get the biggest economy in the world, their economy went down with 0.5 percent.
Also Italy and Spain followed this trend and for Spain this is the first such drop since 1993.
Analysts think the household spending will drop down.

The ECB already cut their interest rate but it’s possible they will cut their interest rate further.
This is bad news on the end of the week but the stocks did well on the markets this week.

I think this is a logical step after the crisis we got. We have to deal with this and we all know this would happen.
It’s now the ECB and the EU that will have to come with some solutions. They have to do that because we need some rest right now. It’s normally that we are in a recession nowadays and households will not spend as much as they did. Everybody knows this and also the leaders of Europe. They have to come with a solution so we can come out of this crisis.

Source: http://newsvote.bbc.co.uk/2/hi/business/7729018.stm