[url=http://online.wsj.com/article/SB10001424052970204652904577197062423798878.html?mod=rss_world_markets][img]http://itvaluechallenge.com/wp-content/uploads/2010/03/wall_street_journal_logo.gif[/img][/url]
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[td][release]Belgium's economy fell back into recession at the end of 2011, reversing the strong growth it had seen in the first half of the year as the country became the latest to fall victim to the euro zone's twin fiscal and banking crises.
Preliminary data released by the central bank on Wednesday showed the economy contracted on a quarterly basis for the second straight quarter in the final three months of 2011.
The flagging economy presents a challenge to the still young government of Prime Minister Elio di Rupo just as parliament is expected to ratify the 2012 budget bill.
Mr. Di Rupo's painstakingly negotiated six-party coalition fought for weeks over how to find savings in the 2012 budget late last year in the leadup to the government formally taking office. Weaker growth than expected could force them to add significantly to the €11.3 billion they had penciled in for this year.
The central bank reported that on a quarterly basis, the economy fell 0.2% in the fourth quarter after dipping 0.1% in the third quarter on a seasonally adjusted basis. On the year, the economy rose 0.9% in the fourth quarter after rising 1.6% in the third quarter from a year earlier.
The central bank also said Belgium's economy expanded 1.9% overall in 2011 compared to 2.3% in 2010. It contracted 2.7% on a seasonally adjusted basis in 2009.
The quarterly contraction was the largest since the first quarter of 2009.
The deterioration in the economic situation has been rapid in Belgium, which as late as June was thought by authorities to be headed for up to 3% growth in 2011, lifted in part by reviving German export demand. The economy grew 0.9% in the first quarter although its expansion slipped to 0.3% between April and June on a quarterly basis.
The preliminary data does not break out data on different sectors however the central bank's numbers showed that in the third quarter, industrial production fell 0.3% on the quarter, construction was 0.8% lower and output in the services sector was flat. Private demand also dipped 0.1% in the third quarter.
In recent weeks, Mr. di Rupo has warned the government may have to take additional measures to ensure it meets its EU agreed 2012 fiscal target of 2.8% of GDP even while he insists the government will do nothing to endanger the country's "social model."
In the wake of a general strike that paralyzed much of the country on Monday, Mr. Di Rupo promised in a speech Tuesday that he would rule out raising the retirement age and will ensure that salaries, pensions and welfare payments will take account of inflation.
However the Franco-phone Socialist party prime minister pledged to meet the country's budget goals for this year and to return the country to a balanced budget in 2015. [/release][/td]
[td][img]http://si.wsj.net/public/resources/images/OB-RP860_belgiu_DV_20120201123548.jpg[/img]
[B]Belgian Prime Minister Elio Di Rupo.[/B][/td]
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The world is so screwed.
We do?
Aww snap
Congrats
[QUOTE=Retardation;34509036]The world is going to hell in a hand basket.[/QUOTE]
You mean the world is functioning normally?
Dont worry the european union will fix this! :dance:
:suicide:
[QUOTE=Retardation;34509036]The world is going to hell in a hand basket.[/QUOTE]
[QUOTE=GlebGuy;34508732]The world is so screwed.[/QUOTE]
jesus christ its a recession.
[QUOTE=Sexy Eskimo;34510263]Dont worry the european union will fix this! :dance:
:suicide:[/QUOTE]Time to enact austerity measures!
me neither wtf
Germany now stands alone.
[QUOTE=OrionChronicles;34532160]Germany now stands alone.[/QUOTE]
Deutschland Uber Alles! VE ARE ZE CHAMPIONS!
Wait, I thought that everyone was in a recession. Huh. :v:
Either way I think you guys are overreacting. You won't go Third World-bad the second your economical expansion halts for a moment. It takes a large number of years to just slightly worsen the standard of a country developed as Belgium.
