BRUSSELS, KOMPAS.com — The European debt crisis drags back slipped to the brink of recession. This is the second time Europe was plunged into economic recession since 2009.
Based on EuroStat data, the growth of 17 European countries shrunk into the 0.1 percent from July to September. In the previous quarter, the European economy shrinks 0.2 percent.
The first recession took place in 2009. This happened after economic growth continued to slump in the past five quarters in a row.
"This recession has been estimated as occurring when the budget austerity policies in times of slowing economic growth and a drop in economic activity in Germany and the Netherlands," said Saxo Bank Chief Economist Steen Jakobsen.
In 2012, the European Commission predicted the economy would have declined 0.4 percent. In 2013, the economy grew by 0.1 percent.
This bad news comes after millions of workers across Europe staged action reject austerity program budget. Rallies in Spain, Italy, Portugal and even take place abroad:.
"We are heading for a double dip recession as a result of his own actions. This is because of the tremendous savings on the southern European and Northern European countries ketidakinginan to help, "said London School of Economics Economist Paul De Grauwe. (Edy Can/Cash)
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