Germany and France are on the line as the euro zone plunges into recession, with Germany having a slowed growth landing to 0.2% based on third quarter reports, officially having 1/5 of the world’s largest economy in recession. France, the second largest economy of the euro zone, is also in danger of economic recession.
Italy, Spain and Greece, the focal points of the crisis, continue to keep up with the recession and economic problems by implementing austerity cuts. Greece alone is in deep recession with an unemployment rate increased to 45% this year.
Economists say that the euro zone’s economy for 2013 is looking to flat line, without any growth and making up for losses, which can prove devastating to the world economy. U.S. and China industries with reduced productions, limited options for sale and surplus prices greatly affecting the growth of their economies.
Europe saw protests against the austerity cuts and measures on Wednesday. However, the Euro Commission still believes that the sacrifices would ensure a better, credit fueled boom in the future.
Many companies have announced job cuts. Ericsson, Ford Motor, Kloeckner and Bombardier recently announced lay-offs.
France’s stagnation or recession could mean more trouble for the euro zone. Spain, Italy and France are due to report on country GDP on Thursday. However, the European Central Banks confirmation of support by buying EU bonds helped boost investor confidence in the entire situation.
Source: Reuters
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