http://www.economist.com/node/21542824
Since the beginning of 2012, positive changes in the economy have occurred in many Eurozone countries. Business confidence and activity have risen in many countries, most notably Germany, who maintained 3% GDP growth in 2012. In the fourth quarter of 2011, however, many countries experienced a decline in GDP growth, and GDP growth in the Eurozone as a whole is currently estimated to have fallen by 0.3-0.4%. The bond markets in the Eurozone are also crumbling, and billions of euros in bonds must be issued to pay maturing debts. In Greece, the number of bank deposits has been declining steadily since 2009, and GDP is expected to have fallen by about 6% in 2011. On top of this, Greece has billions of dollars in bonds to repay in 2012. All of these factors, in theory, should increase savings rates and decrease consumer confidence in the Eurozone, which contracts the economy and causes recessions.
Since the beginning of 2012, positive changes in the economy have occurred in many Eurozone countries. Business confidence and activity have risen in many countries, most notably Germany, who maintained 3% GDP growth in 2012. In the fourth quarter of 2011, however, many countries experienced a decline in GDP growth, and GDP growth in the Eurozone as a whole is currently estimated to have fallen by 0.3-0.4%. The bond markets in the Eurozone are also crumbling, and billions of euros in bonds must be issued to pay maturing debts. In Greece, the number of bank deposits has been declining steadily since 2009, and GDP is expected to have fallen by about 6% in 2011. On top of this, Greece has billions of dollars in bonds to repay in 2012. All of these factors, in theory, should increase savings rates and decrease consumer confidence in the Eurozone, which contracts the economy and causes recessions.
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