THE GUARDIAN: Germany's 2.2% growth helps eurozone to outpace US / Every eurozone country except Greece now out of recession / Euro strengthens, with potential threat to Europe's competitiveness
The German economy grew at its fastest pace in the second quarter since the country was reunified two decades ago, fuelling the strongest growth in the eurozone in more than two years.
Europe's largest economy powered ahead between April and June, growing by 2.2%, thanks to a recovery in construction and strong foreign demand for German goods, the federal statistical office, Destatis, reported today. This was well above market expectations of 1.4% growth. Growth in the first quarter was revised higher to 0.5% from 0.2%.
Germany's stellar performance helped the 16-member eurozone grow by 1% in the second quarter, the strongest growth rate since the first quarter of 2008 and a strong improvement on the 0.2% recorded for the first three months of this year. No detail is available yet, but exports, investments and a backlog of work in the construction sector after a harsh winter are expected to have been the main factors driving growth.
"After three difficult months of eurozone battering, today's numbers will help to heal the eurozone's wounds. For the first time since the second quarter of 2009, the eurozone outpaced the US economy," said Carsten Brzeski at ING.
America grew by around 0.6% in the second quarter of 2010, slower than earlier in the year.
Every eurozone country except Greece has now come out of recession. Only Greece experienced a sharp drop of 1.5%. The best performers were led by Germany, the Netherlands (0.9%), Austria (0.9%), Belgium (0.7%) and France (0.6%), while Spain (0.2%) and Portugal (0.2%) are still lagging behind. >>> Julia Kollewe | Friday, August 13, 2010
THE GUARDIAN: Germany reported an impressive 2.2% growth in the second quarter today, the strongest since the country was reunified two decades ago. This helped fuel growth in the 16-member eurozone, which expanded by 1%, compared with just 0.2% in the first three months of the year. France expanded by 0.6% while Spain recorded lacklustre growth of 0.2%. Here is what economists made of today's figures. >>> | Friday, August 13, 2010