12 SEP 2010
By Stefan Steinberg | Global Research
Last week, the European Central Bank (ECB) raised its forecast for growth in the 16-nation Eurozone by just over half a percent, to an average rate of 1.6 percent for 2010. Earlier estimates had predicted growth of only 1.0 percent.
This predicted increase is largely due to the temporary performance of Europe’s biggest single economy, Germany, and disguises the fact that growth rates are minimal for most European Union countries and negative for many others. Latvia, Romania, Bulgaria, Cyprus and Spain remain in recession and recent statistics for Greece suggest the country is actually plunging more deeply into recession.
New figures for the British economy reveal a slowdown in public sector activity leading to increased job losses. This has revived media speculation about a possible “double dip recession” in the near future when the drastic spending cuts announced by the new British coalition government come into force.
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