Economic Growth Estimates Slashed for 2013
I realize many people might be getting tired of hearing about the eurozone and the lack of economic growth in that union; however, we must be aware that what does occur in the eurozone and the trajectory of its economic growth can and will have an impact on the American economy. The global economy is more closely tied together now than ever before, and a lack of economic growth in one area could spread into another nation.
As I wrote several days ago in my article “Global Recession Fears Grow as Strong Nations Weaken,” Finland is showing signs of extremely weak economic growth. On Friday, we had more reports from the eurozone that economic growth is far below what is acceptable.
Germany’s central bank, the Bundesbank, announced that its estimate for economic growth in 2013 will only be 0.4%, a huge decrease from earlier estimates in June for economic growth in 2013 to be 1.6%. Austria’s central bank also slashed its 2013 estimates to 0.5%, as compared to previous estimates of economic growth of 1.7% in 2013. (Source: “German, Austrian central banks see grim 2013 as crisis bites,” Reuters, December 7, 2012.)