EU and Eurozone GDP, first quarter 2012: German growth due to exports and… a rise in government consumption!

Via email from Barclays Capital : Euro Area Q4 'Flash' GDP at -0.3% Quarter Over Quarter Eurostat has estimated that euro area GDP contracted by 0.3% q/q in Q4 in its "flash" form (BC & consensus: -0.4% q/q). This is the first negative reading since Q2 09 (-0.2% q/q), and the most negative since Q1 09 (-2.7% q/q).

STOCKHOLM, Sweden — Swedish furniture giant Ikea was drawn into Europe’s widening food labelling scandal Monday as authorities said they had detected horse meat in frozen meatballs labelled as beef and pork and sold in 13 countries across the continent. The Czech State Veterinary Administration said that horse meat was found in one-kilogram packs of frozen meatballs made in Sweden and shipped to the Czech Republic for sale in Ikea stores there. A total of 760 kilograms of the meatballs were stopped from reaching the shelves.

Fresh European GDP data is out today, and it reinforces what a terrible slump Europe and the Eurozone are in. GDP in the quarter shrank 0.2%, which is worse than the 0.1% shrinkage that had been expected. From Eurostat:

By Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the University of Missouri-Kansas City. Cross posted from New Economic Perspectives

Germany is in recession. It's not a "technical recession", no matter how anyone labels it. And the recession will pick up steam as the year progresses. Please consider Germany’s economy shrinks most in 3 years as crisis hits eurozone powerhouse.

The situation is significantly worse than the mood. But the eurozone crisis is far from over. It’s wishful thinking to expect otherwise WIESBADEN, Germany — The German economy was hit hard by the eurozone crisis in the final quarter of last year, shrinking more than at any point in nearly three years as traditionally strong exports and investment slowed, the Statistics Office said on Tuesday.