The story of the day is ugly Q4 Eurozone GDP numbers.
OK, maybe that’s not surprising to you. Ugly Eurozone GDP numbers, what’s new?
Fair enough, but this chart posted by economist Philippe Waechter of Natixis really puts it into context.
Basically, after the financial crisis, the Eurozone (just like the US) massively fell off the previous trend rate of growth. Output has been far below potential.
But now, unlike in the US, the Eurozone is even falling off its post-crisis trend. Granted, Q4 might have been the bottom, and economies are expected to rebound a bit in 2013, but this is very bad. The economies in Europe are falling off an already subpar trend.
Photo: Philippe Waechter, Twitter