The Conference Board Economics Watch<sup>®</sup> - European View
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The Conference Board Economics Watch® - European View

  • Authors:

    Jean-Claude Manini

  • Publication Date:
    January 26, 2012

The Euro Area looks to be in a mild recession

  • Despite some relief in December, leading economic indexes for the Euro Area and member states have been trending downward in recent months
  • More recently, coincident indicators of real economic activity have also fallen, suggesting that the Euro Area has entered a period of recession
  • European policy makers may continue to “muddle through” the crisis, taking some necessary but insufficient action to generate a quick recovery
  • While the probability is small, anxiety about a disorderly resolution of the Euro Area crisis remains high and explains why 2012 growth prospects are weakening further
  • Structural improvements to support growth and competitiveness are also needed, but remain in short supply



 



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