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Eurozone growth lowered to zero | Eurozone growth lowered to zero |
(9 minutes later) | |
The eurozone's economy failed to grow at all in the last three months of 2009, revised figures have shown. | The eurozone's economy failed to grow at all in the last three months of 2009, revised figures have shown. |
The European Union's statistics office said that the quarter-on-quarter growth in the three months to December had proved to be zero. | The European Union's statistics office said that the quarter-on-quarter growth in the three months to December had proved to be zero. |
This was revised down from a previously reported 0.1%, according to Eurostat. | This was revised down from a previously reported 0.1%, according to Eurostat. |
Year-on-year, the economy of the 16 countries using the euro contracted by 2.2%, more than the previously estimated 2.1%. | Year-on-year, the economy of the 16 countries using the euro contracted by 2.2%, more than the previously estimated 2.1%. |
At the same time, the chief economist of the Organisation for Economic Co-operation and Development, Pier Carlo Padoan, said economic growth in the developed world was likely to slow down in the first half of 2010. | At the same time, the chief economist of the Organisation for Economic Co-operation and Development, Pier Carlo Padoan, said economic growth in the developed world was likely to slow down in the first half of 2010. |
The OECD predicted that overall quarter-on-quarter growth for the G7 group of nations would be 1.9% in the first three months of 2010 and 2.3% in the second quarter, as against the 3.7% recorded in the last quarter of 2009. | The OECD predicted that overall quarter-on-quarter growth for the G7 group of nations would be 1.9% in the first three months of 2010 and 2.3% in the second quarter, as against the 3.7% recorded in the last quarter of 2009. |
"Economic activity gathered steam in most of the major OECD economies in the last quarter of 2009, with the notable exception of the euro area," the OECD said. | |
Debt reduction | Debt reduction |
Mr Padoan said Europe's urgent priority was to reduce levels of government debt that had climbed during the financial crisis. This should happen before interest rates started to rise, he added. | Mr Padoan said Europe's urgent priority was to reduce levels of government debt that had climbed during the financial crisis. This should happen before interest rates started to rise, he added. |
"We would not recommend that countries wait for market pressures to take action. If that happens, it means they're too late," he said. | "We would not recommend that countries wait for market pressures to take action. If that happens, it means they're too late," he said. |
He also said that Greece should do this without further help from the rest of Europe. | He also said that Greece should do this without further help from the rest of Europe. |
The debt reductions should start in 2011, "or earlier where needed", according to the OECD economists. | The debt reductions should start in 2011, "or earlier where needed", according to the OECD economists. |
The group also said that an impediment to global growth was the high valuation of the Chinese currency. | The group also said that an impediment to global growth was the high valuation of the Chinese currency. |
"We all know one key currency that should move from its current level and appreciate," said Mr Padoan, referring to China's yuan. | "We all know one key currency that should move from its current level and appreciate," said Mr Padoan, referring to China's yuan. |
But conversely, he said that European exporters were benefiting from a "devalued" euro, relative to the dollar. | But conversely, he said that European exporters were benefiting from a "devalued" euro, relative to the dollar. |