Europe's GDP: Going Down

By John S. McClenahen In the wake of France's and Germany's poorer-than-expected GDP growth numbers for this year's first calendar quarter, the London-based European Economics unit of UBS Warburg has revised downward its projected growth rates for the ...
Jan. 13, 2005
ByJohn S. McClenahen In the wake of France's and Germany's poorer-than-expected GDP growth numbers for this year's first calendar quarter, the London-based European Economics unit of UBS Warburg has revised downward its projected growth rates for the 12-nation "eurozone." UBS Warburg now projects just 2% collective GDP growth for the dozen European countries now using the euro; the previous forecast was for 2.4% growth. Germany is the main culprit, with its GDP growth for 2001 now expected to be only 1.3%, down seven-tenths of a percentage point from the earlier forecast of 2% growth. "The [German] consumer has gone on an unexpected buyer's strike, caused by higher-than-expected energy and food prices, increased indirect taxes, and a stagnant labor market," relates UBS Warburg.
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