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

    Wife of IS Leader Charged in Death of US Hostage

    Suspect allegedly admitted to being responsible for American aid worker Kayla Mueller, who officials say was sexually abused and ‘owned’ by one IS member

    Year of the Monkey Could Prove Economic Balancing Act for China

    China is up against a tricky situation on the financial front, facing the need to fight capital flight while also stopping a further slide of foreign currency reserves

    Runners Attempt 26-mile South Pole Marathon in Sub-Zero Temperatures

    How alluring is running 26.2 miles at 10,000 feet when it’s minus 31 Celsius out?

    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.
    'No Means No' Program Targets Sexual Violence in Kenyai
    X
    February 08, 2016 4:30 PM
    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video 'No Means No' Program Targets Sexual Violence in Kenya

    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video New Hampshire Voters Are Independent, Mindful of History

    Once every four years, the northeastern state of New Hampshire becomes the center of the U.S. political universe with its first-in-the-nation presidential primary. What's unusual about New Hampshire is how seriously the voters take their role and the responsibility of being among the first to weigh in on the candidates.
    Video

    Video Chocolate Lovers Get a Sweet History Lesson

    Observed in many countries around the world, Valentine’s Day is sometimes celebrated with chocolate festivals. But at a festival near Washington, the visitors experience a bit more than a sugar rush. They go on a sweet journey through history. VOA’s June Soh takes us to the festival.
    Video

    Video 'Smart' Bandages Could Heal Wounds More Quickly

    Simple bandages are usually seen as the first line of attack in healing small to moderate wounds and burns. But scientists say new synthetic materials with embedded microsensors could turn bandages into a much more valuable tool for emergency physicians. VOA’s George Putic reports.
    Video

    Video Bhutanese Refugees in New Hampshire Closely Watching Primary Election

    They fled their country and lived in refugee camps in neighboring Nepal for decades before being resettled in the northeastern U.S. state of New Hampshire -- now the focus of the U.S. presidential contest. VOA correspondent Aru Pande spoke with members of the Bhutanese community, including new American citizens, about the campaign and the strong anti-immigrant rhetoric of some of the candidates.
    Video

    Video Researchers Use 3-D Printer to Produce Transplantable Body Parts

    Human organ transplants have become fairly common around the world in the past few decades. Researchers at various universities are coordinating their efforts to find solutions -- including teams at the University of Pennsylvania and Rice University in Houston that are experimenting with a 3-D printer -- to make blood vessels and other structures for implant. As VOA’s Greg Flakus reports from Houston, they are also using these artificial body parts to seek ways of defeating cancerous tumors.
    Video

    Video Helping the Blind 'See' Great Art

    There are 285 million blind and visually impaired people in the world who are unable to enjoy visual art at a museum. One New York photographer is trying to fix this situation by making tangible copies of the world’s masterpieces. VOA correspondent Victoria Kupchinetsky was there as visually impaired people got a feel for great art. Joy Wagner narrates her report.
    Video

    Video Sanders, Clinton Battle for Young Democratic Vote

    Despite a narrow loss to former Secretary of State Hillary Clinton in last week's Iowa Democratic caucuses, Vermont Senator Bernie Sanders secured more than 80 percent of the vote among those between the ages of 18 and 29. VOA correspondent Aru Pande talks to Democrats in New Hampshire about who they are leaning towards and why in this week's primary.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.