Eurozone Economy Shrinks

Last year, the European economy shrank 0.3 percent in the fourth quarter. The IMF has forecast a 0.5 contraction throughout 2012. Both France and Germany beat analyst predictions. All Northern European countries, with the exception of the Netherlands either grew or exceeded analyst expectations.

Weakness was concentrated in the heavily indebted south. Based on these numbers, Italy, Belgium, Greece, and Portugal are all in recession. Business confidence has been further hampered recently by the lack of resolution of the current Greek bailout, required for Greece to not default on its next debt payment. Greece’s economy contracted by 7 percent in 2011.

Source: Reuters

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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