Euro zone exits recession in Q2 slightly faster than expected
By Reuters | 14 Aug, 2013, 03.16PM IST
BRUSSELS: Stronger growth in the euro zone's two largest economies, Germany and France, helped the euro zone to emerge from its longest recession to date in the second quarter, confirming expectations a fragile recovery was under way. The 17 countries sharing the euro needed seven quarters to return to growth of 0.3 per cent, on a seasonally adjusted basis, in the three months to June, data from the European Union's statistics office Eurostat showed. Confirming a fragmented picture of the rebound, Spain's economy fell by 0.1 per cent on the quarter, while Italy and the Netherlands both dropped by 0.2 per cent. Bailed euro zone peer Portugal posted a 1.1 per cent expansion, showing the fastest growth in the euro zone in the three months to June, data showed.
The bloc's performance in the second quarter beat expectations of 35 economists in Reuters poll, who anticipated a 0.2 per cent rise. The economy fell in the second quarter by 0.7 per cent, compared with the same period last year, with the market anticipating a 0.8 per cent decline. Eurostat revised the first quarter drop in the euro zone to to 0.3 per cent on the quarter, from a previous 0.2 per cent fall. The single currency area, however, now faces an uneven and bumpy recovery dented by record high joblessness and belt-tightening austerity in peripheral countries, which need to speed up market reforms, boost growth and create new jobs.
The bloc's performance in the second quarter beat expectations of 35 economists in Reuters poll, who anticipated a 0.2 per cent rise. The economy fell in the second quarter by 0.7 per cent, compared with the same period last year, with the market anticipating a 0.8 per cent decline. Eurostat revised the first quarter drop in the euro zone to to 0.3 per cent on the quarter, from a previous 0.2 per cent fall. The single currency area, however, now faces an uneven and bumpy recovery dented by record high joblessness and belt-tightening austerity in peripheral countries, which need to speed up market reforms, boost growth and create new jobs.
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