Euro Recovery over?
Euro Recovery over? (Bloomberg)
Third quarter figures for the euro zone reflected an increase in gross domestic product of only 0.1 percent, after a 0.3 percent gain over the three previous months. The fall-off stems from cooling exports and falling household consumption. In an attempt to ward off just this sort of waning recovery, the European Central Bank (ECB) cut its main refinancing rate to 0.25 percent in early November. Even with this action, the ECB predicts that the euro zone will see its total economy contract 0.4 percent for the year. Now, combine the slumping recovery with widespread bank malfeasance in Europe, and you have a pretty foul-tasting dish for investors. But is it too bitter for you?