Archive for September 2012

Eurozone Unemployment

September 2, 2012

The rate of joblessness in the Euro zone has reached 10.8 percent, this is indeed high.

source: http://www.tradingeconomics.com/euro-area/unemployment-rate.

More unemployment means less purchasing capacity by the consumers and people of a particular country or economy. It is not clear when the economic conditions in Europe will improve, so that unemployment rate and other macroeconomic indicators will start to improve.

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Eurozone Budget Deficit

September 1, 2012

Fiscal bleeding in the Euro area continues, as the average budget deficit (expenditures are larger than revenues) reaches 6 percent of GDP. This is twice the original target of 3 percent of GDP maximum  among EU member economies.

source: http://www.tradingeconomics.com/euro-area/government-budget

More budget deficit simply means more borrowings, when those governments should in fact reduce borrowings to limit the pile up of their public debt.