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Europe Live Friday 24th May 2013

Three institutes forecast another decline in economic activity in the euro zone

10th April 2012

On 3rd April three European statistics institutes, IFO, Istat and INSEE published a paper on the economy in which they anticipate a further decline in economic activity in the euro area in the first quarter of 2012 (-0.2%), after that registered in the last quarter of 2011. This is due to be followed by two quarters of almost total stagnation (0% and +0.1%). Indeed although financial tension has calmed, policies to reduce public spending and also the labour market, are due to continue to weigh on consumption and growth. Moreover because of rising oil prices, inflation is due to decrease very little.

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