There are also worrisome developments in Spain, the fourth -
largest Eurozone economy.
Not exact matches
Italy is the
eurozone's third
largest economy, and its debt - to - GDP ratio of 133 % is the second
largest in the currency union, after Greece.
And the market still (largely) expects that the ECB will eventually undertake a
larger QE program than what it is currently executing as the
eurozone's
economy continues to flag.
Italy has the third -
largest economy in the
Eurozone, following Germany and France.
The so - called policies of fiscal stabilization dictated by the Bundestag will only make the situation in the
eurozone's fourth -
largest economy worse, not better.
Fresh purchasing manager's index (PMI) readings for the month of March were also released, showing continued manufacturing sector expansion in the world's
largest economies, including the U.S., China and the
eurozone.
Of the
eurozone's four
large national
economies, only Italy bucked the trend, recording a 1.1 % rise in output, while Germany and France recorded declines of a similar magnitude and Spain was flat.
The data released on Thursday showed that the
Eurozone's
largest economy is beginning to feel the strain of the debt crisis.
German numbers are raising concerns about the strength of the
eurozone's
largest economy.
Even usually - reliable Germany, the
eurozone's
largest economy, is in the midst of a downturn.
As the Democratic Party seems set to win Italy's general elections next year, and thus take control of the third
largest economy of the
Eurozone, such ideological adjustment is now particularly urgent.
The austerity measures in the
eurozone's third -
largest economy come as France seeks to capitalise on the redrawing of European power - relations with a new intra-EU bloc that would effectively create a two - tier union.
As such, I would not expect this move to have a
large effect on the
eurozone economy.
But what we do know is that if there is a «bad» outcome, the
larger the amount of
eurozone debt that goes into default, the more damaging for the world
economy and financial system it will be.