Due to a run of very disappointing activity indicators, we  aggressively lower  2009 GDP growth estimates for the euro area. 

We estimate GDP growth for the euro area to -3.3%, from -1.6% before.  This would imply a contraction in activity that was last seen in WW II. !!!

Reason for cutting our numbers is not difficult to find… 

The main reason for cutting our growth outlook for the euro area is that incoming economic activity and sentiment indicators have essentially been in free fall as of late.  Not only did 4Q show a larger than expected decline of 1.5% in non- annualised terms, but also the incoming industrial production data for the month of January pointed to a further acceleration in the rate of decline in early 2009.  As a result, we now expect euro area GDP to fall nearly 2% between January and March.  In addition, downgrades to GDP growth estimates elsewhere in the world, notably in Central and Eastern Europe, cast further dark clouds over the outlook for export demand.   

Mr Trichet you are BEHIND THE CURVE !!!