Thursday April 17, 2014 Search
Weather | Athens
15o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Euro-area economic growth slows as exports, consumption cool

The euro area’s nascent recovery from a record-long recession nearly stalled in the third quarter as exports and household consumption cooled.

Gross domestic product rose 0.1 percent after a 0.3 percent gain in the previous three months, the European Union’s statistics office in Luxembourg said on Wednesday. That’s in line with Eurostat’s initial estimate. From a year earlier, the economy contracted 0.4 percent.

The European Central Bank cut its main refinancing rate to a record-low 0.25 percent on Nov. 7, based in part on its forecast for “continued, albeit modest, growth in the second half of the year.” The ECB predicts the euro-area economy will contract 0.4 percent this year before growing 1 percent in 2014. It will release new forecasts on Thursday.

“There’s no sign in the incoming data that growth is accelerating in the fourth quarter,” said Elga Bartsch, chief European economist at Morgan Stanley & Co. in London. “We are concerned Europe will lack an engine of growth; we are worried about the core -- France, the Netherlands and Germany.”

Exports from the euro area grew 0.2 percent after a 2.1 percent gain in the second quarter, Wednesday’s report showed. Imports expanded 1 percent, down from 1.6 percent, and household consumption growth slipped to 0.1 percent from 0.2 percent in the previous three months.

French GDP fell 0.1 percent in the third quarter as President Francois Hollande failed to revive investment in the face of heavy tax burdens. Growth in Germany, Europe’s largest economy, slowed to 0.3 percent after a 0.7 percent expansion in the second quarter and the Dutch economy grew 0.1 percent.

The euro-area economy will expand 0.2 percent in the fourth quarter and 0.3 percent in the first three months of 2014, according to Bloomberg’s monthly survey of economists.

Policy makers meeting in Frankfurt on Thursday will leave the ECB’s benchmark rate unchanged at 0.25 percent, according to all 60 economists in a Bloomberg News survey.

Even as economic confidence rose to the highest in more than two years in November, the 17-nation currency bloc is still struggling with the legacy of a debt crisis now in its fifth year. Unemployment remained near a record high in October and industrial production dropped more than forecast in September.

Air Berlin Plc, Europe’s third-biggest discount carrier, last month scrapped its profit target as efficiency measures fail to offset low demand that the airline predicts will continue into 2014. “Given the weak demand and the unabated intense competitive environment, even further price erosion is apparent for the current winter half-year,” Chief Executive Officer Wolfgang Prock-Schauer said.

[Bloomberg]

ekathimerini.com , Wednesday December 4, 2013 (13:48)  
Greek current account deficit widens in February
National Bank of Greece plans senior unsecured bond sale
Yield on first post-default Greek bond falls to issuance level
Greece startup leaders say they can’t break jobless cycle alone
Homemade bomb targets car of deputy Parliament speaker´s wife
A homemade explosive device on Thursday destroyed the car of deputy Parliament Speaker Giorgos Kalantzis's [photo] wife. The vehicle was parked outside the couple's home in Kavala, northern ...
Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
Laid off cleaning ladies wearing crowns of thorns on Thursday protested outside the Finance Ministry in Athens, local media said. Demonstrators reportedly waved banners against the job cuts ...
Inside News
SOCCER
Greek soccer turns fishier than ever
Soccer in Greece reached new lows in scenes unseen since the national team’s triumph in Euro 2004, as PAOK and Olympiakos served up a cup semifinal with PAOK emerging as the winner and the s...
BASKETBALL
Greens within a whisker of upsetting CSKA Moscow
Panathinaikos came mighty close to snatching home advantage from CSKA Moscow in Game 1 of the Euroleague play-offs on Wednesday, but eventually succumbed to its host in Russia in overtime, w...
Inside Sports
EDITORIAL
Transparency of political party funding
Ensuring transparency in the funding of political parties and the manner in which they choose to spend their funds are crucial to the smooth functioning of our democracy. After all, most of ...
COMMENTARY
Historical baggage
In Ukraine, which is on the brink of civil war, it’s not just whether the former Soviet republic will join the Western camp or retain a neutral status reminiscent of Finland before the break...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek current account deficit widens in February
2. National Bank of Greece plans senior unsecured bond sale
3. Yield on first post-default Greek bond falls to issuance level
4. Homemade bomb targets car of deputy Parliament speaker´s wife
5. Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
6. Greece startup leaders say they can’t break jobless cycle alone
more news
Today
This Week
1. Ground-breaking Good Friday mass signals thaw in Cyprus
2. Seven arrested over Toumba violence
3. Mayoral candidates clash over Athens mosque plans
4. Greece startup leaders say they can’t break jobless cycle alone
5. Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
6. Homemade bomb targets car of deputy Parliament speaker's wife
Today
This Week
1. Bomb explodes outside Bank of Greece
2. Time to take a hard look at debt sustainability, says OECD chief
3. For faith and country
4. CCTV footage from Nigrita Prison shows signs of inmate torture [Video]
5. Car bomb explodes outside Greek Central Bank building, no one hurt [Update]
6. Samaras sees no need for third bailout
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.