The recently released data show that the
European economy is still hovering at the bottom: the British economy this year
may be zero growth, the Italian economy has continued to decline.
Bank of England expects the UK economy to
near-zero growth this year.
British central bank – the Bank of England
released a report on the 8th, a further decline in the growth of British
economic, this year is expected to close to zero. The Bank of England pointed
out that the biggest threat of economic recovery comes from the euro zone
crisis. Released in May on a forecast data, the bank expects the British
economy grew by 0.8%.
Some people therefore predict that the Bank
of England will take further action to stimulate the economy, the most likely
measures to further cut interest rates. Britain’s benchmark interest rate at
the lowest level in history, has been maintained at 0.5% over the last three
years. Bank of England Governor Mervyn King denied on further interest rate
cuts predicted. He said, cutting 25 basis points of interest rates would not have much effect on economic growth, but may give a negative
impact on financial institutions and the construction industry.
The UK economy is currently in recession, following the fourth quarter of last year and the first quarter of this year, gross domestic product (GDP)contracted by 0.3%, again in the second quarter of this
year contracted by 0.7%.
Italy’s economy down 0.7% qoq
Italian National Bureau of Statistics released
the latest data on the 7th said, the country’s gross domestic product (GDP) in
the second quarter of this year declines 0.7%, a decline of more than expected,
which is four consecutive quarters of economic qoq decline. Seasonal economy
When the first quarter of this year, the
Italian economy fell 0.8%, in the third quarter and the fourth quarter of last
year the Italian economy decreased by 0.2% and 0.7% respectively. Ben May, an economist of the British research institutions think, the dwindling business activities is a major
obstacle to development of the Italian economy. Retail sales decreased, consumer
confidence slump and the sharp drop in the total banking sector lending have
seriously hampered the development of the Italian economy.
ISTAT also released on the 7th, the Italian
industrial production output index fell 1.4% in June, representing a
significant decrease of 8.2% year-on-year. In addition to the mining industry,
other industrial area of the output value is a substantial decline in this
country. The second quarter of the overall industrial output in Italy fell 1.7%
in the first quarter, industrial output fell 2.3%.