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European GDP Growth Trounces America In Q1, Biggest Rise In 4 Years; Greece Back In Recession
While the US economy was crushed by harsh snow in Q1, with its GDP set to be revised to nearly -1.0% (yes, we know the real reason was the collapse in Chinese end demand and the soaring dollar but don't tell the Fed), Europe must have had a very balmy winter, because as Eurostat reported earlier today, Europe grew (and considering Europe estimates the "benefit" for prostitution and illegal drugs to the economy, we use the term loosely) 0.4% in the first quarter, a 1.6% annualized growth rate, in line with expectations, up from 0.3% last quarter and a year ago, and tied for the highest GDP print in 4 years.
Some other statistics from the WSJ: for the first time since the first half of 2010, all four of the Eurozone’s largest economies recorded growth, and for the first time since the first quarter of 2011, the currency area’s economy grew more rapidly than both the U.S. and the U.K.
Then again this is perhaps the 3rd false dawn for the Eurozone in the past 5 years. Sure enough, the WSJ offers hope:
That combination of faster and more evenly spread growth will feed hopes that 2015 could mark a decisive year for the eurozone in its efforts to recover from its debt crisis, aided by fresh stimulus from the European Central Bank, lower oil prices and signs that bank lending may be set to increase after years of decline.
Then again, this time may not be different:
However, policy makers have openly expressed worries that the recovery may not be sustained, citing high unemployment, high government and corporate debt burdens, banking-system problems and weak investment spending. They contend that politically difficult overhauls in France and Italy, and an increase in investment in crumbling infrastructure in Germany and elsewhere, are the only way to achieve lasting growth in Europe.
There is also worry that as a a result of rising oil prices the boost to growth from higher disposable incomes may be fading, raising doubts about the future strength of the pickup.
Curiously, Germany’s economy slowed more sharply than expected, recording growth of 0.3% compared with 0.7% in the previous period. But France and Italy both exceed expectations, growing 0.6% and 0.3% respectively, having stagnated in the previous period. One wonders just how big the contribution from hookers and blow was in these two economic juggernauts.
Of course, the biggest conern is that the ECB's QE is working "too well", and with Europe on track for a full recovery, and with the ECB clearly running out of securities to monetize the recent tumble in yields notwithstanding as a negative 10Y Bund print remains just a matter of time, Europe's strong growth may just be the worst possible news for Europe.
And then there is Greece which is back in recession with GDP falling 0.2% in the first quarter, after a 0.4% decline in the final three months of last year.
Speaking of Greece, to all those concerned that Europe's growth may be "too strong", when -not if- Greece is kicked out of the Eurozone, all those strong GDP numbers will soon become a distant memory.
Finally, here is the full breakdown.
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That went well.
Time for more sanctions?
there is no growth anymore in europ neither.
all politics are in deny, if they say the truth market panic leading to crash, we are condemned.
Throw those pathetic Greeks out of Europe already.
European GDP Growth Trounces America In Q1
Do you suppose England would take us back if we asked really nicely?
I'll bet the Queen wouldn't make us take 29.5 hr/wk jobs.
you mean the Queen would - graciously, of course - allow you to have "zero-hours jobs"
The Brits rig their unemployment numbers like the US is.
At the end of the USSR -- the USSR would count partially complete buildings as complete for GDP purposes.
A dying empire rigs its numbers to maintain the status quo.
Where exactly do you think we've been since 71?
The Tory bastards are sanctioning the unemployed left, right and centre. That means they are denied unemployment benefits, this results in them not being counted as unemployed. Welcome to hell.
allow you to have "zero-hours jobs"
We already have 93 million of those, and we're shooting for a new record next month.
The UK is thumping along, which is why we have just re-elected "the nasty party".
The UK is the difference between the EU and US. UK is dragging up the EU figure.
Austerity must be working?
Or more like it, the EU can publish BS numbers just like the US.
Now its down to who's LIES are BIGGER!
The most important thing is not truth or accuracy but the "stimulation" of confidence.
But what whould the European GDP look like in US dollars for Q1?
http://www.finviz.com/forex_charts.ashx?t=EURUSD&tf=d1
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Excellent read by PCR, highly recommended for ZH readers...
http://www.paulcraigroberts.org/2015/05/11/war-threat-rises-economy-declines-paul-craig-roberts/
If QE were instituted earlier in the quarter, the growth would have been a lot higher (of course excluding data subtracting money printing and debt).
interesting to see how italy outpaced expectations ... guess maybe we should include coke & hookers in our GDP calculation. pretty sure we'd be north of 7% here in the states if we did.
Decoupled, but not in a good way.
I smell smell b*llsh*t. Does anybody else smell b*llsh*t?
Yes...it smells like money. You can bet it does to some anyway.
But what a great thought! If they just made money smell like shit, people would spend it as fast as they got it! Or else learn to like the smell of shit, which is yet another win for government.
Well the gvt thinks it's shit don't stink so they win no matter what.
The Race To The Bottom. ..... And down the stretch they come
The worse conditions get for business, the more bankruptcies there are.
The more bankruptcies, the more jobs lost, and higher unemployment.
The more unemployed people, the more desperation to earn a living.
The more desperation, the more women (and men) turn to prostitution.
The higher the prostitution, the higher the GDP grows.
And THIS is GOOD?? WTF?
Oh STFU with these 3-month 'statistics'...We've been in a friggin depression for like 7 years now, what does 3 months tell ANYBODY?
Nothing. It tells them NOTHING. But it gives them something shiny to hold up for all the sheeple to follow.
Finland also in a recession, just as a sidenote...I guess they had a cold winter too!
and suddenly Greece found an emergency fund to make their next payment. Bwwwhhhhaaaaaaaaa. You have to be really stupid to believe that one.
"Greece Back In Recession"
What a headline! Greece has been in recession for the last 8 years, or thereabouts. I don't think anyone seriusly can calim they ever left recession during this period!
Apples to oranges. The US doesn't count blow and hoes.