The real GDP growth of the euro area remained negative for three consecutive quarters, from October–December 2011 through April–June 2012, and it is believed that negative growth cannot be avoided for the July–September quarter.
As such, the effects of the economic recession in Europe have been exerting downward pressure on the global economy not only through a decline in trade activities – a direct channel – but also through cautious business activities resulting from heightening uncertainty. Second, the deceleration in the Chinese economy has been more prolonged than expected.