Debt Crisis By the Numbers: Spain Enters Recession, Germany Thrives

Emerging Markets Markets
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Like a high-speed RailEurope train, the debt crisis keeps chugging along in the euro zone. But there are a few countries where the contagion hasn’t fully spread. Yet.

A new debt crisis report out today reveals that Germany’s gross domestic product actually gained 0.5% during the first three months of the year. Several other countries also grew their GDPs.

Many euro-zone countries weren’t so fortunate. Spain’s economy contracted for a second straight quarter, thus officially pushing it into recession. Italy remains mired in a recession after contracting for a third straight quarter.    

Fortunately, the growing and receding countries balanced each other out, preventing the euro zone as a whole from officially entering a recession. Collectively the euro zone grew 0% from the previous quarter, but did not contract.

Here’s a closer look at some of the debt crisis numbers:

The Bad News

  • Greece’s economy was 6.2% smaller from January through March than it was in the first quarter a year ago. The country is on the brink of a default, and it may not be part of the euro zone for long.
  • Italy contracted by 0.8% from the fourth quarter; Spain contracted 0.3%
  • The Netherlands’ GDP declined 0.2%; Portugal’s contracted 0.1%. Both countries remained in recession
  • The Czech Republic shrank by 1%
  • Hungary contracted 0.7%
  • Romania contracted 0.1%
  • Cyprus remained in a recession

The Good News

  • Germany’s economy was the biggest bright spot, expanding 0.5% from the fourth quarter and 1.2% compared to the same quarter a year ago
  • Finland’s economy grew by 1.3% from a year ago
  • Belgium grew by 0.3%
  • Austria grew by 0.2%

The Mixed News

  • France’s economy stagnated, with 0% GDP growth. With a new president, Francois Hollande, being sworn in earlier today, the current quarter could prove to be a pivotal turning point one way or another for the world’s fifth-largest economy.
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