Free Newsletters - Space - Defense - Environment - Energy - Solar - Nuclear
..
. Earth Science News .




POLITICAL ECONOMY
Caution urged on European growth prospects
by Staff Writers
Brussels (UPI) Aug 23, 2013


disclaimer: image is for illustration purposes only

Markets buoyed by minuscule growth data from Europe were served cautionary advice by think tanks and analysts who remain skeptical of an early turn in troubled eurozone's fortunes.

Eurozone consumer confidence rose in August compared with July, the European Commission said in a flash estimate Friday, but independent financial analysts warned against reading too much in recent upbeat assessments of the 28-nation EU's economy and even less of the troubled 17-nation eurozone.

A tiny growth rise led to headlines the eurozone was headed toward a 26-month high. But analysts warn the figures are patchy and do not represent the true state of either the eurozone, with its rampant unemployment, or the 28-member EU, with its uneven performance.

European Commission data said eurozone consumer confidence indicators rose "markedly" in the month, climbing from minus 17.4 to minus 15.6 in the eurozone and from minus 14.8 to minus 12.8 in the European Union, which added Croatia as its 28th member July 1.

A 0.3 percent growth rise cited by EU statistical office Eurostat made clear stronger domestic demand in France and Germany -- rather than a wider trend across the EU or eurozone -- helped push the economy into growth after the prolonged downturn.

The gain followed a 0.2 percent economic decline in the first quarter in the 17-member eurozone and a 0.1 percent decline in the EU.

"The GDP increase looks likely to overstate the true health of the Eurozone economy in the second quarter," Markit Economic Research said in a report.

In particular, it said, the increase looks to be based on unsustainable factors, notably a weather-related upturn and a record jump in car output. The upturn also sits in contrast to weaker business survey data, notably in France, where the largest question marks hang over the the national income growth data.

"This combination of temporary-looking growth drivers and the contrast with the survey data suggests that the impressive performance may not be repeated in the third quarter," the report warns.

"Nevertheless, while there is some evidence that the second-quarter GDP number overstates the true underlying health of the Eurozone, there's little doubt that the region is slowly mending."

Markit says variations in national performance underline the fragility of the upturn, especially when deeper looks at the data suggest that the strength of growth in both France and Germany looks somewhat unsustainable.

France looks particularly fragile, recent figures show. Business slump in the country deepened in August for the first time in five months. This could be partly because of extended summer holidays but the French economy is likely to contract by 0.3 percent in the third quarter. Most analysts remain uncertain about the next phase in French economy, a potential source of another wobble in the eurozone.

Another potential source of instability for the eurozone are renewed fears Greece may need a third financial bailout. German speculation about a Greek relapse rattled Chancellor Angela Merkel's re-election campaign. Germany goes to polls Sept. 22 to elect a new Bundestag parliament.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
FDI into China rises 7.09% in Jan-July: government
Shanghai, China (AFP) Aug 23, 2013
Foreign direct investment (FDI) into China grew 7.09 percent year-on-year in the first seven months of 2013, official data showed Friday, citing optimism towards the domestic economy among foreign investors. Incoming FDI, which excludes financial sectors, jumped to $71.4 billion for the January-July period, China's commerce ministry said in a statement. For July alone, the figure surged ... read more


POLITICAL ECONOMY
U.N. condemns Australia's treatment of refugees

Raytheon provides public safety a bridge from land mobile radios to smartphones and tablets

Mutualink Unveils Google Glass for Public Safety

Russia convicts officials of 2012 floods negligence

POLITICAL ECONOMY
Lab-made complexes are "sun sponges"

Physicists pinpoint key property of material that both conducts and insulates

Using x-ray vision to detect unseen gold

U.S. firm releases $1,400 scanner to create 3-D printing files

POLITICAL ECONOMY
How otters save the sea grasses

Dead Sea, Red Sea plan raises environmental hackles

Japan seeds clouds to boost Tokyo rain

In US, 'rivers on Rolaids' are legacy of acid rain

POLITICAL ECONOMY
Warming Antarctic seas likely to impact on krill habitats

Change of Venue for NASA's IceBridge Antarctic Operations

UM Researcher Finds Loss of Sea Ice Causes Ecological Changes

UM Scientists Use New Approach to Reveal Function of Greenland's Ice Sheet

POLITICAL ECONOMY
One million cockroaches flee China farm: report

Study: Early European hunter-gatherers got pigs from farming neighbors

China graft crackdown hits Hong Kong's 'Dried Seafood Street'

How does your garden grow?

POLITICAL ECONOMY
Pakistan floods affect 1.5 million: officials

Four peacekeepers missing in Sudan's Darfur flood: UNAMID

Record floods threaten major city in Russian Far East

More than 300,000 affected by Sudan floods: WHO

POLITICAL ECONOMY
Kenyan soldiers kill al-Shabaab guerillas

Kenya looks east, signs $5-bn China deals

South Sudan arrests general for rights violations

Mali court confirms Keita's landslide election win

POLITICAL ECONOMY
Researchers reveal hunter-gatherers' taste for spice

Building better brain implants: The challenge of longevity

Researchers say human foot not unique, more like those of great apes

Archaeologists find evidence of separate Neanderthal cultures in Europe




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement