2012Nov15
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Mixed GDP Prospects for the Eurozone

According to a recent interactive chart by The Economist, problems surrounding the euro have eased since restructuring took place.  Spearheaded by the president of the European Central Bank, the ECB has, under specific conditions, purchased short-term bonds from countries that were facing economic decline.  Countries that were facing severe economic decline have seen gains, notably in the area of current-account deficits turning to surpluses in Ireland.  Also quite positive, Spain and Portugal's current-account deficits have been lessened.

Government debt is still a subject for concern in the peripheral countries of the Eurozone, with Portugal, Ireland, and Italy having governmental debt at over 100% of their GDP.  Greece is in the deepest debt, with government debt at 175% of the Greece's GDP.  Another area for future progress is within the increased gap between the countries within the Eurozone that are doing the lending and those that are on the recipient end of those loans; Germany's GDP will grow this year, while Greece's will fall, adding another year to its six of recession.
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