By Ashesh Rambachan
April 9, 2014
The Economist reported last week,
“The recovery, though feeble, has nonetheless been sustained. Output rose by 0.3% (an annualised rate of 1.3%) in the second quarter of 2013, and although growth slowed to 0.1% in the third, it picked up to 0.2% in the fourth. More important, there are signs that the pace may be accelerating this year. Despite the crisis in Ukraine, euro-zone surveys of confidence and activity in the first three months of 2014 have been encouraging.”
Since when is .2% growth encouraging? How is 1.30% growth encouraging when unemployment across the Eurozone is 11.9%? (It’s much, much worse in member states such as Spain and Italy.) To make matters worse, inflation across Europe fell to 0.50% this last quarter. Newsflash: This is not a recovery and to make matters worse, there are concrete steps that can be taken to ameliorate the pain.