Tuesday, October 05, 2010

More popes in the economic woods

The WSJ picks up the latest Eurozone growth figures and they don't make healthy reading.
The euro zone's economic growth slowed sharply in September as contractions in peripheral countries such as Spain and Ireland threatened the currency area's recovery, a survey by financial-information company Markit showed Tuesday.
Official data also showed retail sales in the 16 countries that make up the euro zone fell more than expected in August, a sign that consumer demand is unlikely to boost growth in the third quarter.
The final euro zone composite output index, a measure of private-sector activity based on a monthly survey of some 4,500 firms, dropped to 54.1 in September from 56.2 in August.

Which rather dampens the already pretty gloomy outlook predicted by the Commission in May.
Can this really surprise anyone? The internal contradictions in the Eurozone are plain for all to see, what with Stiglitz et al predicting a nightmare. Isn't it time the Eurozone started to wonder seriously whether the single currency is fit for purpose?

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