Economic Growth GDP Comparison: Italy Essay

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8% in the fourth quarter of 2008.... [a]sharp slowdown in finance and insurance, a further contraction in construction, and a deceleration in durable-goods manufacturing were the leading contributors to the economic slowdown" (Overview of the U.S. Economy: Perspective from the BEA Accounts, 2009, BEA). Still, Europe is experiencing its worst economic downturn since the Second World War. Its more precipitous decline contradicts initial economic expectations that the European Union might be buffered from the crisis. European home prices remained more durable than in the United States and European consumers have cut back less on their spending. The problem is that the European export industry has been suffering. While the more developed nations of Europe have taken more aggressive measures to inject capital into their economies and pursued more aggressive stimulus plans than the United States, poorer economies cannot afford to do so and still adhere to the policies of the European Union regarding the euro.

Germany, France and the Scandinavian countries are mounting billion-dollar stimulus plans and erecting fences to protect their banks" but the "peripheral economies" such as Italy "find themselves caught in an awful policy bind: credit is available, but...

...

Bond and currency speculators have demonstrated that they intend to punish countries with dubious economic prospects, just as they have punished banks," and few EU countries have more dubious economic prospects at present than Italy (Thomas 2009).
Works Cited

Italy 2009 GDP to shrink 2.5 pct (2009, February 3). Reuters. FX Street.

Retrieved February 19, 2009 http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=08b67ab1-2c05-4ff4-bfc7-e0e6915b76b2

Pfanner, Eric. (2009, February 3). Europe slump deeper than expected. The New York Times.

Retrieved February 19, 2009 http://www.nytimes.com/2009/02/14/business/14euro.html

Overview of the U.S. Economy: Perspective from the BEA accounts. (2009). Bureau of Economic Affairs. (BEA). Retrieved February 19, 2009 at http://www.bea.gov/newsreleases/glance.htm

Thomas, Landon. (2009 January 19) Once a boon, Euro now burdens some nations.

New York Times. Retrieved February 19, 2009 at http://www.nytimes.com/2009/01/24/business/worldbusiness/24euro.html?_r=1&fta=y

GDP

Sources Used in Documents:

Works Cited

Italy 2009 GDP to shrink 2.5 pct (2009, February 3). Reuters. FX Street.

Retrieved February 19, 2009 http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=08b67ab1-2c05-4ff4-bfc7-e0e6915b76b2

Pfanner, Eric. (2009, February 3). Europe slump deeper than expected. The New York Times.

Retrieved February 19, 2009 http://www.nytimes.com/2009/02/14/business/14euro.html
Overview of the U.S. Economy: Perspective from the BEA accounts. (2009). Bureau of Economic Affairs. (BEA). Retrieved February 19, 2009 at http://www.bea.gov/newsreleases/glance.htm
New York Times. Retrieved February 19, 2009 at http://www.nytimes.com/2009/01/24/business/worldbusiness/24euro.html?_r=1&fta=y


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