The European Union released figures for Q4 2012 GDP today and they were awful. GDP fell by 0.6% in the euro zone and 0.5% in the entire EU, with only Estonia and Slovakia growing inside the euro zone in Q4. Stock markets are getting clobbered on the news and the euro is selling off. This is not unexpected for me as I have been writing a number of articles about different euro zone countries economies underperforming and their governments missing deficit targets. To wit, I am looking more to Europe sovereign bond markets to converge to the downbeat economic reality than to currency or stock markets. The markets to focus on here are Spain, Portugal and France because this is where I see problems for Europe.
Looking at the overall figures, the 0.6% contraction in the fourth quarter in the eu...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.