Investing
No Recovery In Europe Means No Recovery Elsewhere
Published:
Last Updated:
The GDP of the Euro-zone is larger that that of the US and it is in just as much trouble. In the 16-nation alliance GDP dropped 4.6% last quarter. Germany’s GDP fell more than it has in decades.
The news is not just bad for Europe. Because of the size of its consumer and business spending pool, an economic catastrophe in the region means that exports from the US and China will remain crippled, which, in turn will undermine any GDP growth in the two large nations.
Whatever optimism experts had during the last several weeks that the economy is making a bottom is probably not accurate, especially when it comes to China. With US and EU growth running in reverse, the notion that China’s exports which are the pillars of its economy are due to improve soon cannot be true.
The EU news makes it much more likely that the real beginnings of a global GDP recovery is still several quarters away.
Douglas A. McIntyre
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
