BBC.co.uk – The outbreak of recession spreads the fear in European zone, many countries announced that they slipped in recession and that they entered in the economic shrinkage zone, new analysis was released to expect that 15 EU countries will go through that way to shrink in the third quarter of this year after 0.2% reduction in the second quarter.
Countries like German, Spain and Italy entered in economic shrinkage, especially Italy which expect the shrinkage percent to exceed 0.5% in the third quarter, in the other hand a country like France which also went through a shrinkage second quarter with a percent of 0.3%, official data shows that it has a percent of 0.1% economic growth in the third quarter.
“The figure is astonishing because everyone was expecting a negative figure and preparing for a recession,” French Finance Minister Christine Lagarde said in an interview on French radio. , pointing out that stable consumption and company investment helped to support the economy.
The BBC’s Ben Shore says the numbers make the employment and pay prospects for 320 million Europeans look grim, but it will also serve to focus minds in Washington where leaders of the G20 developed and emerging economies will begin talks over the weekend.
Economic summit G20 will be performed to discuss how to contain this crisis and to lower the loses as possible as they can, Ahead of the summit, Gordon Brown called for worldwide tax cuts and spending increases to prevent the global economy from slipping into recession.
“We need to agree on the importance of co-ordination of monetary and fiscal policy,” he said. “There is a need for urgency. By acting now, we can stimulate growth in all our economies. The cost of inaction will be far greater than the cost of any action.”
