The OECD reports that it “expects 0.3% growth in the UK in the last three months of the year, but said the economy could contract by as much as 1% amid high uncertainty over its projections. … [The] reason for the uncertainty surrounding its latest estimates was because the full impact of the continuing debt woes in the eurozone and resulting stock market volatility was not yet known.”
My response: Well, obviously. The political conglomeration [think: tax codes, regulatory bodies, etc.] of euro-zone countries, particularly Germany and France, is augmenting this lack of confidence by signaling their commitment to buoying other nations.
And expect things to get worse if rumors persist that Brussels wants to raise tariffs on China. Or that Frankfurt wants to make an “alternative” credit evaluating agency. Or that a Euro nation is exiting. Or that… you get my point.
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Comments
Its hard to derive too much joy from Europe’s inevitable meltdown, seeing as we’re pretty close on their tail.
I like Europe. I think its a pity that their politics are ruining the competitiveness of perfectly capable people.
I didn’t think you meant it that way, it was more of a reference to myself. I’ll confess enjoying it a tad when Europe, which has tended to look down at us for not embracing social democracy all these years, gets to see where such policies inevitably lead. But I don’t want to see those countries actually collapse, which is looking more and more like a possibility. And I really don’t like that we have an administration in power that seems hellbent on following their example no matter where it leads (or as I’m suspecting more and more, because they know exactly where it leads).
Are you suggesting that bailouts have a negative effect on confidence in the short run? Because economic data from every major bailout in history suggests otherwise. I agree that their effectiveness in the long run is suspect to say the least, but the actions of the ECB and Germany are hardly creating the uncertainty that will exist over the next three months.
Agreed on all counts. I can’t believe I’m saying this, but Canada has actually had the best response to the crisis/learned the best lessons from the recession.
Kathleen you’re right about that, and that factor is driving a few of my CA Lib friends bonkers. They detest Harper with a zeal that makes BDS look benign, but they reluctantly admit their economy could not be in better hands considering the realities of this period in world history.
The dichotomy between their political beliefs and national financial reputation is so glaringly obvious it’s straining their ability to be polite and civil. And for a Canadian, that’s not a pretty sight.