Monday, August 13, 2012

Europe Update: More Contraction

by Bill McBride on 8/13/2012 09:21:00 AM

On Sunday I put together a short list of key dates in Europe in September and October when European policymakers return from vacation.

Here are a couple more stories this morning ...

From Reuters: Italy Public Debt Hits Record High, Deficit Also up

Public debt at the end of June rose 6.6 billion euros to 1.973 billion euros, the Bank of Italy said ... The economy contracted 0.7 percent in the second quarter and gross domestic product was down 2.5 percent from a year earlier. ...
Italy's one-year borrowing costs rose marginally at auction on Monday, with uncertainty over how and when the European Central Bank might move to ease both the country's and the region's mounting debt problems tempering appetite for risk.
From the Athens News: GDP sinks 6.2% in second quarter
The country’s economy contracted 6.2 percent in the second quarter ... Currently in its fifth consecutive year, the economic downturn has driven unemployment to record highs, with nearly one in four unemployed and more pain expected ahead. ...
The jobless rate has already climbed to 23.1 percent, with nearly 55 percent of those aged 15-24 out of work.
Europe will be in the headlines again soon and policymakers will be busy in September and October.