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Europe IN recession club

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LONDON  – World leaders headed to Washington on Friday to try to find ways to tackle a global economic crisis that has plunged much of Europe into its first recession since the euro currency was formed.
The worst financial crisis in 80 years has weakened the world’s major economies and official data showed the 15-nation euro zone economy had shrunk by 0.2 percent for the second quarter in a row.”We think that the situation is likely to get worse before it gets better,” said Nick Kounis, an analyst at Fortis Bank.
“We will probably see further falls in output in the first few months of next year, before a gradualimprovement later in the year, but we think that there will be no real recovery before 2010.”
Analysts said they expected the European Central Bank to cut interest rates further to try to spur economic growth.With Europe, as well as parts of Asia and North America, suffering, leaders of the G20 developed and emerging countries travel to Washington to try to find ways to ensure the crisis, started by a U.S. housing market crash, is not repeated.
But agreement among the G20, which represents 85 percent of the world’s economy and two-thirds of its population, is unlikely over whether more regulation of markets can protect consumers, savers and companies from the fall-out.
Washington says there should be no return to greater state control of financial markets. Much of Europe says without more regulation, a repeat of the last year’s turmoil is inevitable.

November 14, 2008 - Posted by | global | , , , ,

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