The Dutch economy contracted 1.1 per cent in the third quarter compared to the second quarter, and 1.4 per cent compared to last year’s third quarter. Many economists had expected a contraction of about 0.2 per cent compared to Q2. Germany and France both managed to eke out a 0.2 per cent expansion in the third quarter compared to the second. It’s France’s first bit of growth all year.
Overall, the eurozone contracted by 0.1 per cent in June to September, compared with Q2. It follows from a 0.2 per cent decline in the second quarter from Q1, according to flash estimates from Eurostat, the EU’s statistical office.
Naturally, the Administration and Democrats will blame Europe’s recession for America’s economic woes. The reality, of course, is just the opposite. Europe is struggling because the workhorse of the global economy – the United States – has been limping along at less than 2% growth. Since World War II Europe has financed its welfare states based on the strength and indirect subsidies of the United States economy. The US has been the workhorse and Europe the wagon. About four years ago, Americans decided that they would like to take a turn as the wagon. Without a global workhorse, the results have been predictable.
That reality doesn’t fit the narrative however, and the American left will happily blame the wagon for not pulling the horse.