Here’s your Cheat Sheet to this week’s top econ stories:
The euro zone moved deeper into recession in the fourth quarter, dragged by major economies like France and Germany performing below expectations. According to Eurostat, the statistical office of the European Union, economic output contracted 0.6 percent across the euro-area 17, and contracted 0.5 percent across the EU27, following a 0.1 percent contraction across the region in the third quarter. With France and Germany joining Spain, Italy, Greece, and others in recession territory, economists are likely to edit their predictions for when the euro zone will round the bend.
For all of 2012, EA17 GDP fell by 0.5 percent, and EU27 GDP fell by 0.3 percent, with contractions in major economies partially muted by growth in countries like Latvia, Lithuania, and Estonia. The news comes just one day after Eurostat reported that industrial production in the EA17 increased 0.7 percent and increased 0.5 percent in the EU27.