Posts Tagged ‘European economy’
Prize-winning economist Joseph Stiglitz declared central European economies at risk for returning to the brink of recession as the government policy to cut spending to reduce budget deficits.
“Forcing a reduction of investment [the government] that have stimulant effects high with the aim of making the deficit look better is something stupid,” he said in an interview with RTE Radio in Berlin was quoted by Bloomberg yesterday.
Euro area the government is working to cut the deficit to below the limit of 3% of gross domestic product (GDP) after the Greek crisis of investor confidence in the lower 16 states in the region.
Although in the second quarter of this region recorded the fastest growth rate in four years, the recovery faced with weakening economic indicators. In August, the service sector and manufacturing growth weakened from the EU among economists forecast in August.
Level of investor confidence in Germany also slowed to its lowest level in 16 months. “Many countries in Europe to focus on the deficit limit of 3%. They risk returning to the brink of a double-dip. Limitation of 3% was not real and only see one side of the balance sheet, “Stiglitz added. Read the rest of this entry »