Wednesday, November 13, 2013

Euro Zone Q3 2013 GDP Preview: Recovery Lacks Momentum As Growth Slows In Germany, France



Euro Zone Q3 2013 GDP Preview: Recovery Lacks Momentum As Growth Slows In Germany, France
By Moran Zhang
on November 12 2013 6:28 AM
The euro zone is expected to eke out marginal economic growth in the third quarter, indicating that while the single currency bloc is sustaining a very modest recovery, it’s struggling to gain momentum.

The 0.3 percent growth seen in the second quarter that ended the region’s record-long recession was a one-time spurt, boosted by a significant bounce in construction activity in some countries (most notably Germany) after it had been held back in the first quarter by particularly poor weather. Gross domestic product in the euro area probably rose just 0.1 percent in the third quarter, according to economists’ consensus estimate.

The European Union’s statistics office will publish preliminary GDP data for the 17-nation euro area on Thursday. Although no details will be released regarding the component breakdown of the figure, IHS Global Insight’s Howard Archer predicts that there could have been a modest pickup in consumer spending overall across the euro zone supported by improved consumer confidence and the boost to purchasing power from very low inflation across the region. In addition, labor markets are showing signs of stabilizing, albeit with unemployment at a very high level.

However, Archer notes that overall investment could well have been essentially flat or even fallen modestly anew in the third quarter after rising 0.3 percent in the second quarter following extended contraction. Investment was boosted in the second quarter by the rebound in construction investment. Business investment still appears to be generally limited across the euro zone.

Euro Zone
European Central Bank sets monetary policy for the Euro Zone.

Note: Mario Draghi is the president of the European Central Bank, and an honorary trustee at the Brookings Institution (think tank).
Foundation to Promote Open Society was a funder for the Brookings Institution (think tank), and the Committee for Economic Development.
George Soros is the chairman for the Foundation to Promote Open Society.
Stuart E. Eizenstat is a trustee at the Committee for Economic Development, and was a U.S. ambassador for the European Union.
Donna S. Morea was a trustee at the Committee for Economic Development, and the EVP for the CGI Group Inc.
CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.
Obamacare is Barack Obama’s signature policy initiative.
Barbara G. Fast was VP for the CGI Group Inc., and a VP for the Boeing Company.
W. James McNerney Jr. is the chairman & president & CEO for the Boeing Company, and a member of the Commercial Club of Chicago.
Commercial Club of Chicago, Members Directory
Please note: This link for the members of the Commercial Club of Chicago can no longer be found.
Cyrus F. Freidheim Jr. is a member of the Commercial Club of Chicago, and an honorary trustee at the Brookings Institution (think tank).  
Mario Draghi is an honorary trustee at the Brookings Institution (think tank), and the president of the European Central Bank.
European Central Bank sets monetary policy for the Euro Zone.

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