The PIGS (Portugal, Ireland, Greece, Spain) may soon be the PIIGS as the Italian economy contracted in the fourth quarter of 2009. The German economy was expected to show some growth but instead, it was stagnant last quarter. France has shown some mild growth but at least it's growth. With the rescue plans for Greece still undecided, the markets may show caution again. None of this ensures a double-dip recession but the recovery is not completely certain either. Reuters:
The news comes at a hard time for Europe's single currency bloc as governments struggle to sort out Greece's debt difficulties and contain financial market fears that have driven the euro lower and government bond yields higher.
German GDP was flat in the final quarter of last year, the statistics office said, following expansions in the two previous quarters that ended a year-long recession. Growth of 0.2 percent had been forecast.
