Russia says it is too early to speak of the start of an economic recovery in the eurozone as its industrial index remains unstable. “The industrial index was actually unchanged in the eurozone and the European Union in January and the situation in industry remains unstable,” said Russia’s Economics Ministry in a monitoring report on Monday. The report added that there are no signs of a steady improvement in the eurozone despite rising economic sentiment indexes. Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain. The report pointed at a decline in gross domestic product (GPD) in Britain, France Germany and Spain at the end of 2012 and a slump in the eurozone lending. “In December 2012, lending in the eurozone continued to fall steadily, primarily in...lending to non-financial firms,” the report added.
The Russian ministry went on to say, “What is alarming is the fall in stimuli for lending by banks, customers and especially the non-financial sector. This trend is postponing the turning point for the recovery to commence, for an indefinite period.”On January 25, the International Monetary Fund (IMF) warned that, “The euro area continues to pose a large downside risk to the global outlook,” predicting that the single currency area would remain in recession in 2013. The European Union leaders are also expected to meet in Brussels on Thursday and Friday for a second time in a fresh effort to reach a deal over the bloc’s next seven-year budget after a failed summit in November. The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries. MKA/JR