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

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa 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.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid