Euro zone avoids recession in Q1: Mecklai

Mecklai graph of the day - Euro zone avoids recession in Q1

The below graph shows previous and actual GDP data for Euro zone and three of its major member nations. It may be noted that in all the four cases, previous GDP figures were either negative or marginally positive while actual data releases for the 1st quarter were mixed as Germany expanded by 0.5%, Italy figure declined by 0.8% while French and Euro zone GDP remained flat at 0.00%. The data released today helped allay fears of recession in the 17- member area, which majority of market participants had expected prior to the release of these reports.

Relatively upbeat Euro area GDP reports is likely to calm investor sentiments, but worries that the bloc could slowdown (due to the ongoing credit crisis) is likely to persist. This in turn is likely to continue pressurizing European assets in the near-term.

The below graph shows the first quarter preliminary GDP data of Euro-zone and its major member nations released earlier today.

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