Up until today, the European Commission was still forecasting growth in the eurozone this year. But a new forecast out today says Europe overall will experience a slight contraction in 2012 — about 0.3% up from prior forecasts of 0.5% growth. The IMF has forecasted a 0.5% decline.
That number is clearly pulled down by very weak economies like Greece and Portugal, but the region’s major economies aren’t exactly booming, the FT points out. Germany and France are expected to post 0.6% and 0.4% growth respectively.
It’s another reminder that debt problems aren’t the only factors that investors need to consider when it comes to Europe. Auto companies have already been hit by weakness, and luxury retailers are also under pressure in Europe.
No comments:
Post a Comment