EU project targets better food risk information for Europeans

Information about food, and especially its risks, flash before our eyes on a daily basis. But how effective and balanced is the information we get? EU-funded researchers believe that enhancing the delivery of information and advice on emerging food risks could help fuel consumer confidence in foods, curb economic losses related to food scares and reduce the number of illnesses linked to foods. The FOODRISC ('Food Risk Communication. Perceptions and communication of food risks/benefits across Europe: development of effective communication strategies') project is working to offer consumers the right information they need about food/risk benefit relationships. Funded under the 'Food, agriculture and fisheries, and biotechnology' (KBBE) Theme of the EU's Seventh Framework Programme (FP7) to the tune of EUR 2.97 million, FOODRISC is filling the gaps along the food information chain.

FOODRISC, which is coordinated by Professor Patrick Wall of University College Dublin's School of Public Health, Physiotherapy and Population Science in Ireland, has pooled the resources of experts in key fields relevant to food risk and benefit communication, namely industry, academia, research institutes. 'Some of the recent "food scares", such as BSE [Bovine spongiform encephalopathy], Dioxin contamination in Belgium and Ireland and the case where milk was contaminated with melamine in China, have undermined consumer confidence in food,' explains Dr Áine McConnon of University College Dublin, FoodRisC project manager. 'With the food industry now being a global manufacturing and distribution business all possible forms of public communication need to be understood and used.'

The FOODRISC consortium is comparing how traditional and social media for news and information is disseminated in the EU, which in turn will lead to the creation of the effective tools the project seeks to give communication on food risks a huge boost. The new FOODRISC website is a step in this direction. More specifically, social media use has ballooned in just a year, with numbers up by 50% in many countries. Facebook, which has taken the world by storm, has more than 570 million registered users, and the number of users of all types of social media currently tops the 1.25 billion mark. Europe has surpassed the US in the personal use of social media.

One of the objectives of the project is to establish a communication toolkit and best practice recommendations that will support organisations across the EU to offer better communication, information and education services to the public. The project partners say the toolkit will help policymakers, food authorities and other end users who seek to develop common approaches to disseminating information to European consumers. Also on the FOODRISC agenda, say the partners, is the description of key configurations of food risk and benefit relationships and the implications for communicators. The consortium will assess how new social media, like Facebook, Twitter and blogs, can be used to provide guidance on how risk communicators can use these media to their advantage. And the partners will illustrate how consumers can attain, interpret and use information to support the target populations. Kicked off earlier this year and scheduled to end in 2013, FOODRISC brings together experts from Belgium, Germany, Spain, Italy, Latvia, the Netherlands, Portugal and the UK.

News source: CORDIS link: article

European Commission has set up Task Force to help maximise the potential of the European Research Council

The European Commission has set up a Task Force to explore options for the future of the European Research Council (ERC). The Task Force is chaired by the Director General of DG Research, Robert-Jan Smits. This follows nearly four years of successful work by the ERC since it was established by the Commission in 2007.

Research, Innovation and Science Commissioner Máire Geoghegan-Quinn said: "The ERC has been a great success already and we need to learn from experience and build on the excellent work already done. The Task Force will help us take some final decisions on how best to equip the ERC to play the key role it will have in the Innovation Union and in the Eighth Framework Programme."The Task Force was set up at the request of the ERC Scientific Council, as announced in its statement in November (see link below), and is the follow-up of last year's thorough Review of the ERC's Structures and Mechanisms, carried out by an expert panel (see link below). The Task Force includes participants from the relevant Commission departments and representatives from the ERC Scientific Council, including its President Prof. Helga Nowotny. There will also be two external members, Prof. Vaira Vīķe-Freiberga, former President of the Latvian Republic and former chair of the Review panel of the ERC, and Prof. Ernst-Ludwig Winnacker, former ERC Secretary General.

Building on last year's review recommendations, the Task Force will examine the remaining unresolved issues and explore possible governance options to guarantee the long term stability of the ERC structure within the European Research Area and in the context of the new Lisbon Treaty.

Presently, the ERC has a dual structure with a Scientific Council, composed of 22 top scientists, setting the scientific strategy, and an Executive Agency, in charge of implementing the operations. The ERC has a budget of € 7.5 billion from the "IDEAS" programme, part of the Seventh Framework Programme for Research, for the period 2007-2013.

The Task Force has already held an initial meeting and aims to conclude its work within six months, hence well before the decision on the next Framework Programme (FP8) is taken, to allow ample time for the Council and the European Parliament to hold a thorough debate about FP8. The Commission will in the first quarter of 2011 launch an open consultation on all issues connected to FP8, with a formal proposal to the Council and Parliament to follow towards the end of the year. FP8 will begin in January 2014.

News source: EU Press Room link: article

EU and China to debate economic and trade issues at high level dialogue

The EU and China will hold their third High Level Economic and Trade Dialogue (HED) on 20 and 21 December in Beijing. It is the first such meeting since the entry into force of the Lisbon Treaty and will cover macro-economic challenges facing the international economy, competition questions as well as trade, investment, innovation, and customs cooperation.

Commission Vice-President in charge of competition policy Joaquín Almunia said: "The European Union and China are both global partners that have much to gain from each other. It is our interest to develop economic relations that are mutually beneficial and provide the best opportunities for our respective citizens. The EU and China must both be actors in the solution of global challenges such as current macro-economic imbalances, development of trade flows, access to raw materials and the need for a more efficient energy use worldwide."

"European businesses have vastly contributed to China’s economy over the last decade," said EU Trade Commissioner Karel De Gucht. "We want to stay in the game and be part of China’s future economic development. A constructive dialogue that looks at both the challenges and the opportunities is the way to make this happen."

The HED offers an opportunity to discuss EU-China relevant topics across the board. It is co-chaired by European Commission Vice-President in charge of competition policy Joaquin Almunia, Trade Commissioner Karel De Gucht, Commissioner for Economic and Monetary Affairs Olli Rehn as well as Chinese Vice-Premier Wang Qishan. The EU will further be represented by Commissioner for Taxation and Customs Union Algirdas Šemeta, Director General for Enterprise Heinz Zourek and Deputy Director-General for Information Society Antti Peltomaki.The meeting takes place as the global economy is gaining a more solid foothold and at a juncture where both the EU and China are moving forward with bold plans for the future of their economies. It is important for the EU and China, two of the largest economies in the world, to discuss the economic challenges they face. Both EU and China can contribute, through their policies and enhanced bilateral cooperation and within the G20, to more solid, sustainable and balanced global growth.

News source: EU Press Room link: article

 

Total weight of goods handled down by 12% in 2009

After growing steadily between 2002 and 2007, the total weight of goods handled in maritime ports in the EU27 remained nearly stable at 3.9 billion tonnes in 2008. It then fell by 12% to 3.4 bn tonnes in 2009 as the result of the economic crisis. As for the sea transport of passengers, the number of passengers embarking or disembarking in maritime ports in the EU27 has remained relatively stable at around 410 million since 2003. In 2009 it fell by 2% to 403 mn.These figures are published in a report from Eurostat, the statistical office of the European Union, on port activity for goods and passengers in the EU, as well as Iceland, Norway and Croatia.

The United Kingdom, Italy, the Netherlands, Spain and France represent almost two-thirds of the total weight of goods handled. The Member States with the largest total weight of goods handled in maritime ports in 2009 were the United Kingdom (500 mn tonnes or 15% of the EU27 total), Italy and the Netherlands (both 470 mn tonnes, 14%), Spain (360 mn tonnes, 11%) and France (320 mn tonnes, 9%). These five Member States all registered a decline of between 10% and 13% in 2009, in line with the EU average.

Italy, Greece, Denmark and Sweden account for almost two-thirds of the total number of passengers handled. In 2009, the highest numbers of passengers embarking or disembarking in maritime ports were recorded in Italy (92 mn passengers or 23% of the EU27 total), Greece (88 mn, 22%), Denmark (44 mn, 11%), Sweden (31 mn, 8%), Germany (30 mn, 7%), the United Kingdom (28 mn, 7%), France (25 mn, 6%) and Spain (21 mn, 5%). For these Member States the change in the number of passengers between 2008 and 2009 ranged from -7% in Denmark and France to +2% in Italy and Germany.

Dover largest port for passengers. Among the top ten cargo ports in terms of tonnes of goods handled, Rotterdam (350 mn tonnes weight of goods handled, -10% compared with 2008) was the largest port in 2009, followed by Antwerp (140 mn tonnes, -17%), Hamburg (90 mn tonnes, -20%) and Marseille (80 mn tonnes, -14%). All of the top ten ports showed decreases in the total weight of goods handled between 2008 and 2009, ranging from -1% in Amsterdam to -20% in Hamburg. Dover (13 mn passengers, -5% compared with 2008) was the largest port in terms of the number of passengers disembarking or embarking in 2009, followed by Paloukia Salaminas and Perama (both 13 mn, -2%), Reggio Di Calabria (11 mn, +9%), Piraeus (10 mn, -6%), Messina (10 mn, +1%) and Calais (10 mn, -8%). 

News source: Eurostat link: publication

Euro area external trade surplus 5.2 bn euro 7.4 bn euro deficit for EU27

The first estimate for the euro area1 (EA16) trade balance with the rest of the world in October 2010 gave a 5.2 bn euro surplus, compared with +4.8 bn in October 2009. The September 20102 balance was +2.6 bn, compared with +1.4 bn in September 2009. In October 2010 compared with September 2010, seasonally adjusted exports fell by 0.1%, and imports by 1.3%. The first estimate for the October 2010 extra-EU271 trade balance was a 7.4 bn euro deficit, compared with -6.4 bn in October 2009. In September 2010 the balance was -11.8 bn, compared with -10.5 bn in September 2009. In October 2010 compared with September 2010, seasonally adjusted exports rose by 0.1%, while imports fell by 3.0%.

These data are released by Eurostat, the statistical office of the European Union. EU27 detailed results for January to September 2010. The EU27 deficit increased for energy (-214.5 bn euro in January-September 2010 compared with -172.8 bn in January-September 2009), while the surplus for manufactured goods rose (+124.9 bn compared with +112.2 bn). EU27 trade with all its major partners grew in January-September 2010 compared with January-September 2009. The most notable increases were recorded for exports to Brazil (+53%), China (+39%) and Turkey (+36%), and for imports from Russia (+37%), China (+30%) and India (+28%). The EU27 trade surplus increased with the USA (+52.8 bn euro in January-September 2010 compared with +31.8 bn in January-September 2009), Switzerland (+13.8 bn compared with +10.2 bn) and Turkey (+13.1 bn compared with +5.8 bn). The EU27 trade deficit increased with China (-122.2 bn compared with -97.8 bn), Russia (-52.1 bn compared with -35.0 bn), Norway (-26.8 bn compared with -24.5 bn) and South Korea (-8.9 bn compared with -8.6 bn). The deficit remained stable with Japan (-15.9 bn).

Concerning the total trade of Member States, the largest surplus was observed in Germany (+113.5 bn euro in January-September 2010), followed by Ireland (+31.8 bn), the Netherlands (+30.6 bn) and Belgium (+14.1 bn). The United Kingdom (-84.8 bn) registered the largest deficit, followed by France (-46.3 bn), Spain (-39.0 bn), Italy (-19.2 bn), Greece (-17.7 bn) and Portugal (-14.6 bn). 

News source: Eurostat link: article

Construction output stable in euro area Up by 0.5% in the EU27

In the construction sector, seasonally adjusted production was stable in the euro area (EA16) and grew by 0.5% in the EU27 in October 2010, compared with the previous month. In September, production fell by 1.6% and 1.2% respectively. Compared with October 2009, output in October 2010 dropped by 6.8% in the euro area and by 1.9% in the EU27. These first estimates are released by Eurostat, the statistical office of the European Union.

Among the Member States for which data are available for October 2010, construction output rose in five and fell in seven. The highest increases were registered in Slovakia and Sweden (both +2.0%), the Czech Republic and Germany (both +1.3%), and the largest decreases in Portugal (-6.6%), Romania and Slovenia (both -1.3%). Building construction remained stable in the euro area and increased by 0.5% in the EU27, after +0.5% and -1.8% respectively in September. Civil engineering rose by 0.4% in the euro area and by 0.5% in the EU27, after -1.1% and -0.7% respectively in the previous month.

Among the Member States for which data are available for October 2010, construction output fell in eight and rose in five. The largest decreases were registered in Spain (-34.1%), Slovenia (-17.6%) and Bulgaria (-10.7%), and the highest increases in Sweden (+18.5%), Poland (+10.4%) and the United Kingdom (+9.5%). Building construction decreased by 6.6% in the euro area and by 1.3% in the EU27, after -7.1% and -2.7% respectively in September. Civil engineering dropped by 8.7% in the euro area and by 4.9% in the EU27, after -10.2% and -6.0% respectively in the previous month.

News source: Eurostat link: article

Single Euro Payments Area (SEPA): Commission sets deadline for pan-European payment system

A Belgian citizen working in The Netherlands receives his salary on his Belgian bank account as quickly as his Dutch colleagues. A German family pays all its gas and electricity bills for their holiday home in Greece by simple direct debit from their German account. A Romanian student on exchange in Italy does all her payments in euros effortlessly from her Romanian account in euros. Similarly, companies will also benefit from SEPA. A German export/import company trading with Latvia, Cyprus and Norway will optimise cash flow by easily collecting funds in euro from debtors in these countries using a single account in Germany. These are just some examples of what could soon be made easier and cheaper. Indeed, the European Commission has today proposed to set EU-wide end-dates for the migration of the old national credit transfers and direct debits to the recently created Single Euro Payments Area (SEPA) instruments. It will mean that national credit transfers and direct debits are phased out and the recently created pan-European systems take their place, respectively 12 and 24 months after the entry into force of the Regulation. This will reduce the costs of payments, increase competition and make cross-border payments as easy as domestic ones. The Commission's proposal now passes to the European Parliament and the Member States for consideration.

Internal Market and Services Commissioner Michel Barnier said: "We have a Single Market, many countries share a single currency and soon we will move to a single pan-European payment system in Europe. It means that making payments cross-border will become as easy as making them at home. Consumers will only need one bank account and their payments will be faster, cheaper and safer. Businesses will benefit from one set of standards and much simpler processes. The proposal adopted today fixes end-dates to make this pan-European system a reality, hopefully as early as 2012." The Single Euro Payments Area (SEPA) is the area where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro under the same basic conditions, rights and obligations, regardless of their location. The objective of SEPA is to increase efficiency and competition so that high-quality and competitively priced electronic payment products exist throughout the whole of the EU. This would mean that Europeans can rely on one bank account to make euro payments across 32 countries1 while enjoying highly competitive services provided by banks. Thanks to SEPA, as from 2012 money transfers will reach the beneficiary at least by the end of the next business day or faster and no deductions will be made to the amounts transferred. As a result, the process of paying bills will be even more convenient. SEPA benefits not only customers. Businesses will enjoy common standards; faster settlement and simplified processing for payments that will improve cash flow, reduce costs and facilitate the access to new markets.

Self-regulatory efforts have proven not to be sufficient to drive forward concerted migration to SEPA. According to available European Central Bank (ECB) data, as of October, only 9.6 % of all credit transfers in the euro area were executed using a pan-European payment instrument. If this trend continues, the full benefits or implementation of the SEPA would only be felt after more than 25 years. Only rapid migration to pan-European, i.e. SEPA credit transfers and direct debits, will generate the full benefits of an integrated payments market. The proposed Regulation will ensure a quick and smooth migration to pan-European credit transfers and direct debits by phasing out the existing national payment instruments. In order to ensure interoperability, the use of certain common standards and technical requirements such as the use of international bank account numbers (IBAN), bank identifier codes (BIC) and a financial services messaging standard (ISO 20022 XML) will be mandatory for all bank account payments in euro in the EU. The proposed regulation also takes into account user concerns such as the possibility to limit a direct debit collection to a certain amount and/or frequency of payments. Banks and companies which send out a large number of bills (for example electricity or telecommunications providers) are encouraged to adopt measures to make SEPA migration as easy as possible for bank account holders. 

The proposed Regulation will also increase transparency and competition between payment services providers and between payment services themselves, notably through the ban on hidden fees between banks for direct debit transactions, which are currently charged in six Member States (Spain, France, Sweden, Belgium, Portugal and Italy).

News source: EU Press Room link: article

Euro area hourly labour costs rose by 0.8% EU27 up by 1.2%

Hourly labour costs in the euro area (EA16) rose by 0.8% in the year up to the third quarter of 2010, compared with 1.6% for the previous quarter. This is the lowest increase registered since the start of the series in 2000. In the EU271, the annual rise was 1.2% up to the third quarter of 2010, compared with 1.5% for the previous quarter.

The two main components of labour costs are wages & salaries and non-wage costs. In the euro area, wages & salaries per hour worked grew by 0.7% in the year up to the third quarter of 2010, and the non-wage component by 1.2%, compared with 1.5% and 1.9% respectively for the second quarter of 2010. In the EU27, hourly wages & salaries rose by 1.2% and the non-wage component by 1.1% in the year up to the third quarter of 2010, compared with 1.6% for both components in the previous quarter.

The breakdown by economic activity shows that in the euro area hourly labour costs rose by 0.3% in industry, 0.6% in construction and 1.1% in services in the year up to the third quarter of 2010. In the EU27, labour costs per hour grew by 0.7% in industry, 0.4% in construction and 1.5% in services. 

News source: Eurostat link: article

Euro area annual inflation stable at 1.9% EU stable at 2.3%

Euro area annual inflation was 1.9% in November 2010, unchanged compared with October. A year earlier the rate was 0.5%. Monthly inflation was 0.1% in November 2010. EU annual inflation was 2.3% in November 2010, unchanged compared with October. A year earlier the rate was 1.0%. Monthly inflation was 0.2% in November 2010. These figures come from Eurostat, the statistical office of the European Union.

In November 2010, the lowest annual rates were observed in Ireland (-0.8%), Slovakia (1.0%) and the Netherlands (1.4%), and the highest in Romania (7.7%), Estonia (5.0%) and Greece (4.8%). Compared with October 2010, annual inflation rose in ten Member States, remained stable in five and fell in twelve. The lowest 12-month averages up to November 2010 were registered in Ireland (-1.8%), Latvia (-1.5%) and Slovakia (0.6%) and the highest in Romania (5.8%), Hungary (4.8%) and Greece (4.5%).

The main components with the highest annual rates in November 2010 were transport (3.8%), alcohol & tobacco (3.4%) and housing (3.3%), while the lowest annual rates were observed for communications (-0.8%), recreation & culture (0.0%) and household equipment (0.7%). Concerning the detailed sub-indices, fuels for transport (+0.37 percentage points), heating oil (+0.13) and gas (+0.09) had the largest upward impacts on the headline rate, while telecommunications (-0.09) had the biggest downward impact. The main components with the highest monthly rates were clothing (0.9%), alcohol & tobacco (0.5%) and food (0.4%), while the lowest were hotels & restaurants (-0.6%), recreation & culture (-0.5%) and communications (-0.2%). In particular, fuels for transport (+0.06 percentage points) and garments (+0.05) had the largest upward impacts, while accommodation services (-0.07) and package holidays (-0.05) had the biggest downward impacts. 

 

News source:  Eurostat link: article

Euro area and EU27 employment stable -0.2% in both zones compared with the third quarter of 2009 The

The number of persons employed in both the euro area (EA16) and the EU271 was stable in the third quarter of 2010 compared with the previous quarter, according to national accounts estimates published by Eurostat, the statistical office of the European Union. In the second quarter of 2010, employment grew by 0.1% in both zones. These figures are seasonally adjusted.

Falls in employment were recorded in construction (-1.1% in the euro area and -1.0% in the EU27) and manufacturing (-0.3% and -0.2% respectively). Agriculture fell by 0.2% in the euro area, but grew by 0.4% in the EU27. Financial services & business activities increased by 0.3% in the euro area and by 0.2% in the EU27. Other services (which mainly include public administration, health and education) rose by 0.2% and 0.1% respectively. Trade, transport & communication services grew by 0.1% in the euro area and remained stable in the EU27.

Compared with the same quarter of the previous year, employment fell by 0.2% in both the euro area and the EU27 in the third quarter of 2010. In the second quarter of 2010, employment decreased by 0.6% in both zones. Eurostat estimates that, in the third quarter of 2010, 221.2 million men and women were employed in the EU27, of which 144.5 million were in the euro area. These figures are seasonally adjusted. These quarterly data on employment provide a picture of labour input consistent with the output and income measure of national accounts. 

News source: Eurostat link: article

GDP per inhabitant in the Member States ranged from 44% to 271% of the EU27 average in 2009

In 2009, the Gross Domestic Product (GDP) per inhabitant in Luxembourg, expressed in purchasing power standards (PPS), was more than two and a half times the EU27 average, while the Netherlands recorded a level more than 30% above the average. Ireland, Austria and Denmark were between 20% and 30% above the EU27 average, while Sweden, Germany, Belgium, Finland and the United Kingdom were between 10% and 20% above average.

France, Italy and Spain registered GDP per inhabitant between 0% and 10% above the EU27 average, while Cyprus and Greece were between 0% and 10% below the average. Slovenia, the Czech Republic, Portugal, Malta and Slovakia were between 10% and 30% lower than the EU27 average. Hungary, Estonia, Poland, Lithuania and Latvia were between 30% and 50% lower, while Romania and Bulgaria were between 50% and 60% below the EU27 average. These data for 2009, 2008 and 2007, published by Eurostat, the statistical office of the European Union, are based on revised4 purchasing power parities, and the latest GDP and population figures. They cover the 27 EU Member States, three EFTA Member States, three EU Candidate Countries and four Western Balkan countries. 

News source: Eurostat link: publication

Trade value growth slows in the third quarter of 2010

The value of world merchandise trade was 18% higher in the third quarter of 2010 than in the same period of 2009, according to the latest WTO quarterly figures released on 1 December 2010. This marks a slowdown in comparison with the 26% increase registered in the second quarter of 2010. From January to September trade expanded by 23%, continuing the recovery that began in the second quarter of 2009. Despite this positive trend, the value of world trade remains below its peak level from before the present financial crisis.

These short-term “value” figures should not be confused with the annual trade growth figures, which are “volume” data using “constant dollars” with inflation taken into account. The latest projection of 13.5% merchandise trade volume growth for 2010, released on 20 September, remains unchanged for the time being. WTO short-term merchandise trade values are expressed in “current” US dollars, ie, they are not adjusted for changes in prices. Nor are they seasonally adjusted. Seasonal patterns therefore considerably affect the quarter on quarter (Q-o-Q) and month on month (M-o-M) developments in world trade, and this in turn affects comparisons between the trade developments in individual regions and economies.

In the third quarter of 2010, world merchandise exports were about 3% higher than in the second quarter (“quarter on quarter”). Within that period, available monthly statistics for about 70 economies representing some 90% of world trade show that merchandise trade stagnated in July, decreased in August and bounced back in September 2010. This pattern is similar, albeit less pronounced, to what had already been observed in 2009 and reflects in good part seasonal variations of demand.

News source: WTO link: article

Global economy unlikely to improve significantly next year

A United Nations report unveiled today paints a gloomy picture of the performance of the global economy next year, with growth projected to be a meagre 3.1 per cent, followed by 3.5 per cent in 2012 – rates that are insufficient to spur the recovery of the jobs that were lost during the economic crisis. The lack of employment continues to put a damper on economic recovery, according to the World Economic Situation and Prospects 2011 (WESP), prepared by the UN Department of Economic and Social Affairs (DESA), the UN Conference on Trade and Development (UNCTAD) and the five UN economic commissions.

Between 2007 and the end of 2009, at least 30 million jobs were lost worldwide as a result of the global financial crisis, the report, previewed in New York, says. It adds that efforts by governments to embark on fiscal austerity can only further suppress the prospects for a faster recovery of employment. “We are not out of the woods yet and still major risks are looming,” said Rob Vos, the Director of the Development Policy and Analysis Division of DESA, who led the team of UN economists who prepared the report. “The road to recovery – we expect to be long and bumpy still. The speed of the recovery as we have seen starting in the middle of 2009 has started to decelerate in the middle of this year particularly owing to weaknesses in the major developed economies, but we also expect that to drag down the growth in developing countries,” Mr. Vos told a news conference at UN Headquarters. The report says that serious risks to the global economy include waning cooperative spirit among major economies, which has weakened the effectiveness of responses to the crisis. It notes that uncoordinated monetary responses have become a source of turbulence and uncertainty in financial markets.

Among developed economies, the United States has been on a recovery trajectory, yet the pace of that rebound has been the weakest in the country’s post-recession experience, according to the report. At 2.6 per cent in 2010, growth in the US is expected to moderate further to 2.2 per cent in 2011 before improving slightly to 2.8 per cent in 2012. That pace of growth is not expected to make much of a dent in unemployment rates, and recovering the jobs lost in the US during the crisis would take at least another four years. Prospects for Europe and Japan are even dimmer, the report notes. Assuming continued, albeit moderate, recovery in Germany, the gross domestic product (GDP) growth in the Euro area is forecast to virtually stagnate at 1.3 per cent in 2011 and 1.9 per cent in 2012.

Japan’s initially strong rebound, fuelled by net export growth, started to falter in the course of 2010 as a result of persistent deflation and elevated public debt. The Asian country’s economy is expected to grow by a meagre 1.1 per cent in 2011 and 1.4 per cent in 2012.

Among the economies in transition, GDP of the Commonwealth of Independent States (CIS) and Georgia rebounded by about 4 per cent on average in 2010, up from the deep contraction of more than 7 per cent in 2009. In 2011 and 2012, the pace of recovery in South-eastern Europe is expected to be rather subdued.

The survey shows that developing countries continue to drive the global recovery, but their output growth is also expected to shrink to 6 per cent during 2011-2012, down from 7 per cent in 2010, because of the slowdown in the advanced countries and the phasing out of stimulus measures.

Developing countries in Asia, led by China and India, continue to show the strongest growth performance, but will moderate to around 7 per cent in 2011 and 2012, according to the report.

Growth in Latin America is projected to remain relatively strong at around 4 per cent, though less robust than the GDP growth of 5.6 per cent estimated for 2010. Brazil, the engine of regional growth, continues with strong domestic demand to boost export growth of neighbouring countries. The sub-region also benefits from strengthened economic ties with the emerging economies in Asia.

In the Middle East and other countries in Western Asia, recovery is also expected to moderate from 5.5 per cent in 2010 to 4.7 per cent in 2011 and 4.4 per cent in 2012. The average annual output growth will be lower than the pre-crisis rate.

Recovery has been solid in most of Africa, where the rebound is expected to continue at about 5 per cent per year in 2011 and 2012, but this is well below potential, and conditions vary across the region. The economies in East Africa are showing strong growth, but several of the poorest countries, especially those in the Sahel region, have suffered from droughts and conditions of insecurity, which is causing hunger and hampering the recovery of their economies.

Suggestions offered in the report that might lead to sustainable recovery include providing additional fiscal stimulus and redesigning the stimulus and other economic policies to lend a stronger orientation towards measures that directly support job growth, reduce income inequality and strengthen sustainable production capacity on the supply side.

Other options include finding greater synergy between fiscal and monetary stimulus, while counteracting damaging international spill-over effects in the form of increased currency tensions and volatile short-term capital flows; ensure that sufficient and stable development finance is made available for developing countries; and finding ways for credible and effective policy coordination among major economies.

News source: UN News Centre link: article

Euro area GDP up by 0.4% and EU27 GDP up by 0.5% +1.9% and +2.2% respectively compared with the third quarter of 2009

GDP increased by 0.4% in the euro area (EA16) and by 0.5% in the EU271 during the third quarter of 2010, compared with the previous quarter, according to first estimates released by Eurostat, the statistical office of the European Union. In the second quarter of 2010, growth rates were +1.0% in both zones. Compared with the third quarter of 2009, seasonally adjusted GDP increased by 1.9% in the euro area and by 2.2% in the EU27, after +2.0% in both zones for the previous quarter.

Variation in components of GDP. During the third quarter of 2010, household final consumption expenditure increased by 0.3% in both the euro area and the EU27 (after +0.2% and +0.3% respectively in the previous quarter). Gross fixed capital formation was stable in the euro area and rose by 0.2% in the EU27 (after +1.7% and +2.1%). Exports grew by 1.9% in the euro area and by 1.8% in the EU27 (after +4.3% and +4.0%). Imports increased by 1.7% in the euro area and by 1.6% in the EU27 (after +4.2% and +3.9%).

US and Japanese GDP increased. In the United States GDP increased by 0.6% during the third quarter of 2010, after +0.4% in the second quarter of 2010. In Japan GDP rose by 0.9% in the third quarter of 2010, after +0.4% in the previous quarter. Compared with the third quarter of 2009, GDP grew by 3.2% in the United States (after +3.0% in the previous quarter), and by 4.1% in Japan (after +2.7%). 

News source: Eurostat link: article

Euro area unemployment rate at 10.1% EU27 at 9.6%

The euro area(EA16) seasonally-adjusted unemployment rate was 10.1% in October 2010, compared with 10.0% in September. It was 9.9% in October 2009. The EU271 unemployment rate was 9.6% in October 2010, unchanged compared with September. It was 9.4% in October 2009.Eurostat estimates that 23.151 million men and women in the EU27, of whom 15.947 million were in the euro area, were unemployed in October 2010. Compared with September, the number of persons unemployed increased by 84 000 in the EU27 and by 80 000 in the euro area. Compared with October 2009, unemployment rose by 0.590 million in the EU27 and by 0.402 million in the euro area.

These figures are published by Eurostat, the statistical office of the European Union.

Among the Member States, the lowest unemployment rates were recorded in the Netherlands (4.4%), Austria (4.8%) and Luxembourg (5.0%), and the highest in Spain (20.7%), Latvia (19.4% in the second quarter of 2010) and Lithuania (18.4% in the third quarter of 2010).Compared with a year ago, the unemployment rate fell in eight Member States and increased in nineteen. The largest falls were observed in Germany (7.5% to 6.7%), Malta (6.9% to 6.2%), Sweden (8.8% to 8.1%) and Finland (8.7% to 8.0%). The highest increases were registered in Lithuania (14.4% to 18.4% between the third quarters of 2009 and 2010), Greece (9.2% to 12.2% between the second quarters of 2009 and 2010) and Latvia (16.5% to 19.4% between the second quarters of 2009 and 2010).

Between October 2009 and October 2010, the unemployment rate for males rose from 9.8% to 9.9% in the euro area and from 9.5% to 9.6% in the EU27. The female unemployment rate increased from 9.9% to 10.3% in the euro area and from 9.2% to 9.6% in the EU27. In October 2010, the youth unemployment rate (under-25s) was 20.1% in the euro area and 20.4% in the EU27. In October 2009 it was 20.2% and 20.6% respectively. The lowest rates were observed in Germany and the Netherlands (both 8.5%) and Austria (9.8%), and the highest rates in Spain (43.2%), Lithuania (35.3% in the third quarter of 2010) and Latvia (34.0% in the second quarter of 2010). In the USA, the unemployment rate was 9.6% in October 2010. In Japan it was 5.0% in September 2010. 

News source: Eurostat link: article