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

    Top US General: Turkish Media Report ‘Absurd'

    General Dunford rejects ‘irresponsible' claims of coup involvement by former four-star Army General Campbell, who led NATO forces in Afghanistan before retiring earlier this year

    Video Saving Ethiopian Children Thought to Be Cursed

    'Omo Child' looks at efforts of one African man to stop killings of ‘mingi’ children

    Protests Over Western Troops Threaten Libyan 'Unity' Government

    Fears mount that Islamist foes of ‘unity' government plan to declare a revolutionaries' council in Tripoli

    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.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora