Europe’s Economy Shrinks

    BARCELONA, SPAIN - AUGUST 01:  Social worker Guiomar Montejo (3rd R) helps elderly women during an activity at the Centre de dia Leal elderly home on August 1, 2012 in Barcelona, Spain. Guiomar has gone back to live with her parents home because of the economic crisis and her salary this month will drop 40 percent. The Catalan Government announced it could not pay the July allocations to old age homes and others social services becouase of an issue with liquidity. According to reports, the Catalan Goverment would not be able to pay 400 million euros in grants. Approximately 100.000 social workers will see their salary cut 40% to 50% and relatives of elderly home residents have had to help pay the salaries and expenses.  (Photo by David Ramos/Getty Images)

    David Ramos / Getty Images

    Here we go again. The euro-zone economy lagged in the second quarter, with the GDP shrinking by 0.2 percent despite growth by Germany, according to Eurostat. The euro zone isn’t officially in recession yet, but some economists warned a double-dip recession could be ahead if decisive action is not taken on the free-falling euro. Coming out poorly in Tuesday’s reporting was Portugal, with its GDP shrinking 1.2 percent during the second quarter and its unemployment rate jumping to 15 percent. France also had its second straight quarter of zero growth, and Spain’s economy shrank 0.4 percent over the same period.

    Read it at Reuters