Euro-area data this week will probably reveal economic scars of the sovereign debt crisis confirming that the region is now suffering the longest recession since the single currency’s creation.
Gross domestic product in the 17-nation economy fell 0.1 percent in the first three months of 2013, a sixth straight quarterly decline, according to the median of 39 economists’ forecasts in a Bloomberg News survey. That would exceed the 15-month long contraction in 2008-2009 during the financial crisis.
The data to be released on May 15 follow a series of national GDP reports that day showing the legacy of the sentiment shock and austerity measures since the crisis began. While a European Central Bank pledge to backstop the euro has eased financial-market tensions, economic confidence at a four-month low in April at a time of record unemployment highlight the risk that the slump will persist.
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