News / Europe

Eurozone Emerges From Recession

Eurozone Emerges From Recessioni
X
August 14, 2013 7:22 PM
The eurozone has finally emerged from 18 months of recession - posting positive growth after unexpectedly strong consumer spending in the currency bloc’s core economies. But, as Henry Ridgwell reports from London, analysts warn this is not the end of the euro crisis.
Henry Ridgwell
The eurozone has finally emerged from 18 months of recession - posting positive growth after unexpectedly strong consumer spending in the currency bloc’s core economies. Analysts are warning, however, that this is not the end of the euro crisis.

After six consecutive quarters of negative growth, the eurozone is finally recovering. The growth figure of 0.3 percent in the second quarter hardly signals a boom - but it is a milestone, said Daragh Maher, foreign exchange strategist at HSBC in London.

“The very fact that we can talk about growth, politicians can talk about growth, markets can talk about growth again - it’s a significant psychological development,” said Maher.

Portugal posted the strongest growth of the quarter - expanding its economy by 1.1 percent. Good news for a country that had been forced to take a $102 billion bailout from the European Union and International Monetary Fund.

But it was the eurozone’s powerhouse economies of Germany and France that hauled the currency bloc out of recession.

Germany grew 0.7 percent and France by 0.5 percent - both driven by higher consumer spending and industrial output. The figures surpassed many economists’ forecasts, said Maher.

“That’s encouraging because, in a way, if the core is at least driving things forward and recovering, they’re in a better position politically and economically to provide the support that the peripherals perhaps still require,” said Maher.

The problem for the eurozone remains its indebted southern periphery.

Spain’s economy contracted by 0.1 percent. In Italy, also struggling with debt and unemployment, the economy contracted by two-tenths of a percent.

And in Greece - ground zero of Europe’s crisis over the past four years - the economy shrank by 4.6 percent. That’s a slight improvement on the previous three months, but indicative of the euro’s ongoing problems, said Joe Rundle, head of trading at ETX Capital, a London-based financial services firm.

"Germany is booming, France is doing okay, but you've got to look at southern Europe, and they are in real dire straits. So you've got this two-tier Europe, and Germany really controlling the austerity while it's booming. So I think it's not the eurozone problems being solved," said Rundle.

That appears to be recognized in Brussels. Chantal Hughes, a spokeswoman for the European Commission, said, “This slightly more positive data is welcome, but there is no room for any complacency. Self-congratulatory statements suggesting that the crisis is over are definitely not for today. There are still substantial obstacles to overcome. The growth figures remain low, and the tentative signs of growth are still fragile.”

The EU is holding back on the celebrations. After one and a half years of painful contraction, though, analysts say the growth figure is welcome news as Europe’s politicians prepare to return from summer vacation.

You May Like

Philippines, Muslim Rebels Try to Salvage Peace Pact

Peace process faces major setback after botched military operation to find terrorists results in bloody gunbattle between government forces, Moro Islamic Liberation Front fighters More

Republicans Expect Long, Expensive Presidential Battle

Political strategist says eventual winner will be one who can put together strongest coalition of various conservative groups that make up Republican Party More

Video New Wheelchair Is Easier to Use, Increases Mobility

Engineers have come up with a lever-operated design that makes use of easily accessible bicycle technology More

This forum has been closed.
Comment Sorting
Comments
     
by: david lulasa from: tambua,gimarakwa,hamisi,v
August 15, 2013 6:33 AM
i think what needs to happen is recession in the world to end,if it just happens in Europe yet Africa is still facing trouble,then its just constipation that will continue taking place in Europe and hence the reason the news from Europe wont be sweet.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More