The so-called Eurozone is experiencing its second recession after 2009. The debt crisis has ravaged and is still ravaging the growth of this continent. Integrated economy comprising of 17 countries has contracted 0.3% in the last quarter and it is most likely to sink up to 0.1% in the current quarter. This simple data is enough to reveal that Europe is going through a recession. Along with the integrated economy, if the economic conditions of the countries are taken separately, the picture will become clearer. The condition, in general, is a little harrowing, but people are keeping their fingers crossed.
The biggest question of the hour is how long the recession will last. There is a simple answer to that and a complicated one. First, the discussion will be on the simple answer. This answer simply reveals that, the recession will be over by the end of year 2012, but there is a condition. If the current political crisis continues and no concrete and strong decisions and taken, then the recession will go on for a longer period of time. If this seems to be a riddle, then you need to understand the scenario of the whole continent a little better and you will get a clearer picture of the economy.
To understand the second answer, you have to go through the economic and political condition of the Eurozone countries in recent past. This may be a little complicated than you thought, but without knowing the root, it is not possible to get the fruit. A simplified picture of the general scenario is being preached here, you need to pay attention. Greece is fighting debt crisis for last 2½ years. Athens is still under a debt of almost 12 billion euros and is seeking help from the lenders. After Greece, Ireland, Portugal, Cyprus and Spain are the countries which asked for financial help a few weeks back.
It is also revealed that the economic crisis of European Union is about to affect the rest of the world. As a result of this, there is a possibility that world economy will come under a deep recession in recent future. It has been also revealed that global growth for this year is now projected at 3.2% and for the next year, the possibility is 3.7%. Both these growth rates are lower than the earlier projection of 3.9%. In short, the global economy is getting under the cloud gradually and that is why it is becoming harder to tell when the recession will end.
Political unrest and changes have gripped the nations all over Europe and there is not much hope that situation is going to change rapidly. This is a matter which will take a long time to get solved. So, instead of depending upon the political situation to change, it will be better if some economic strategies are formulated and implemented. This is basically the best way to deal with the recession. If such steps are taken, then this recession will end towards the end of this year or early next year. Though the possibility is quite bleak, hope is always there.