The euro-area economy has been in a recession since the third quarter of 2011, when the shortest expansion since 1970 ended, a panel of academic economists said.
The slump marked the end of what the Centre for Economic Policy Research’s business-cycle dating committee said were 10 quarters of growth in the 17-nation currency bloc, which began in the second quarter of 2009.
Output grew 4 percent from the trough to the peak of the growth cycle, yet wasn’t enough to bring gross domestic product back to its pre-financial crisis level, the panel said in a report published in London today.
The European Union’s statistics office said today that official GDP data showed the economy satisfied the textbook definition of a recession by shrinking for the second consecutive quarter in July-September. It contracted 0.1 percent from the previous quarter, according to the report.
The CEPR committee studies data beyond GDP to make its call, making its work similar to that of the National Bureau of Economic Research’s business-cycle dating panel in the U.S.
Philippe Weil, president of OFCE, a Paris-based research institute, is the committee chairman. The panel also includes Richard Portes and Lucrezia Reichlin of London Business School.
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