Economy of the European Union

Finnish central bank sees economy shrinking this year

Agence France-PresseJune 11, 2013 10:36

Finland's central bank said Tuesday the Nordic country's economy will contract by 0.8 percent this year, fuelling fears that the staunch austerity advocate is becoming increasingly affected by the eurozone's economic crisis. In December, the Bank of Finland forecast 0.4 percent growth in 2013, down from a 1.2 percent projection in July last year. "Private consumption will no longer support growth to the same extent as before, with consumer purchasing power and employment both declining," the bank said in a statement.

European stocks slide as investors eye German court

Agence France-PresseJune 11, 2013 07:30

European stocks fell sharply on Tuesday as investors eyed a key German court hearing on the legality of the European Central Bank's bond-purchasing programme which has calmed financial markets since its launch last summer. Sentiment was also hit by earlier losses in Asia, after the Bank of Japan did not announce any new stimulus measures. "There weren't any surprises from the Bank of Japan as the central bank kept policy unchanged," said analyst Michael Hewson at traders CMC Markets.

Hungary economic 'fairy tale' comes true, or so it seems

Agence France-PresseJune 11, 2013 03:38

When Hungary's economy minister predicted a year ago an economic "fairy tale" for Hungary in 2013, few believed him. But recent data from the central European country show he might have been right. Figures out last week confirmed that the non-eurozone EU member emerged from recession in the first quarter, notching up growth of 0.7 percent, leading several analysts to hike their forecasts for the year.

Slovak eurozone-focussed industry picks up in April

Agence France-PresseJune 10, 2013 16:39

Slovak industrial production -- mainly German, French and Korean-brand auto exports to the eurozone -- picked up in April with 2.2-percent growth on an annual basis after a 1.3-percent rise in March, official data showed on Monday. But on an adjusted basis, industrial output in the eurozone member contracted by 1.9 percent in April after adding 0.3 percent in March, the Slovak Statistics Office said.

Greek budget targets on track, recession pushes down prices

Thomson ReutersJune 10, 2013 10:35

By Lefteris Papadimas ATHENS (Reuters) - Greece reported its budget deficit was on track to meet targets set by foreign lenders, whose inspectors arrived in Athens on Monday to measure progress under the country's bailout program. Athens more than halved its central government primary budget gap, which excludes local authorities, social security entities and interest payments, in the first five months of the year, as it chopped public spending and investment.

Italian economy shrinks further: official data

Agence France-PresseJune 10, 2013 09:33

The Italian economy did worse than thought in the first quarter of this year, shrinking by 0.6 percent instead of by 0.5 percent estimated previously, official data showed on Monday. The figures paint a grim picture for the state of the Italian economy, the third-biggest in the eurozone, marking the seventh quarterly contraction in a row. However, the Organisation for Economic Cooperation and Development said on Monday that its indices of leading indicators pointed to "positive change" in the Italian economy.

TSX back under water, traders look to more fallout from Fed stimulus intentions

The Canadian PressJune 9, 2013 09:31

TORONTO - The Toronto stock market likely faces more tough slogging in the weeks ahead as resource stocks lose ground alongside commodity prices amid a slowing global economy. And the other major TSX pillar, financials, will likely find gains elusive amid a slowing economy and housing sector. At the same time, New York markets could be in for more volatility as traders try to gauge the intentions of the U.S. Federal Reserve as far as easing up on stimulus.

French president says eurozone crisis is over, but steps to boost growth needed

The Canadian PressJune 8, 2013 09:29

TOKYO - French President Francois Hollande sought reassure Japanese business leaders Saturday that the eurozone debt crisis is over but acknowledged that steps to boost the region's growth and competitiveness need to be taken. In a speech on the final day of his visit to Japan, Hollande said that the potentially destructive debt crisis has served to "reinforce" Europe and foster greater integration of the 17 member economies that use the euro currency.

Euro shoo-in Latvia posts EU's top growth rate

Agence France-PresseJune 7, 2013 10:20

Eurozone shoo-in Latvia topped the European Union's growth chart for the first quarter on Friday as official data showed it posted a 3.6 percent hike in GDP output. The ex-Soviet Baltic state of two million won approval from the EU executive on Wednesday to become the eurozone's 18th member in 2014, though ordinary Latvians seem fearful of ditching their national currency as the euro area struggles in recession.

German central bank lowers 2013 growth forecast but says firm recovery is starting

The Canadian PressJune 7, 2013 06:20

BERLIN - Germany's central bank on Friday lowered its growth forecast for this year but said a recovery had already started, as evidenced by a rise in export and industry figures in Europe's largest economy. The lingering recession in the 17-nation eurozone and the unusually cold weather in Germany dragged down growth over the first few months of the year, the Bundesbank said. It now expects the economy to grow by only 0.3 per cent in 2013, down from its December forecast of 0.4 per cent.