Spending Cuts Slows Euro Economy to 4-Year Low

Latest Gross Domestic Product (GDP) results for the Eurozone shows that growth increased by only 0.4 percent from the previous quarter. Growth for the previous quarter was one percent and experts say the slowing growth is due largely to cuts in government spending as several debt-ridden countries strive to bring deficits under control.

“The squeeze from fiscal consolidation programs on the periphery will build,” said Ken Wattret, chief euro-zone economist at BNP Paribas in London. “That contrast between Germany driven by strong demand for its exports and the periphery really struggling is going to become more rather than less pronounced.”

Source: Bloomberg

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