Sunday October 26, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Exports, spending pull eurozone out of recession

A bounce in exports and spending pulled the eurozone out of recession in the second quarter of 2013, data shows, in the first signs of recovery after the bloc's longest slump.

Stronger-than-expected growth from Germany to Portugal helped the bloc's economy expand 0.3 percent in the April-to-June period, the European Union's statistics office Eurostat said on Wednesday in its first breakdown of the data.

Exports to the rest of the world rose sharply in the quarter after six months of falling sales, while government spending made its first positive contribution to the economy since late 2009 when Greece plunged the eurozone into its debt crisis.

"Everything is pointing to a recovery, Dirk Schumacher, an economist with Goldman Sachs, said, adding he sees 0.1 percent growth in the third quarter. We do have some divergence between countries, but the upswing is helping everyone to benefit."

Firms in the eurozone - almost a fifth of the world's economy - had their best month in over two years in August as orders rose for the first time since mid-2011, a separate survey showed.

A string of reports in recent days point to renewed growth for the 17 countries sharing the euro, appearing to weaken the case for another interest rate cut by the European Central Bank when it meets on Thursday.

A Reuters survey of 60 economists forecasts the bank will keep rates on hold at 0.5 percent and stay put until at least 2015, while euro zone inflation remains subdued.

Behind Germany's strong growth of 0.7 percent in the second quarter, Eurostat's breakdown highlighted the softening of the austerity policies that many economists blame for worsening the euro zone's 1-1/2 year-long recession. That was accompanied by the first quarterly rise in household spending since late 2011.

Portugal's economy grew 1.1 percent, while Spain's contraction was just 0.1 percent, offering hope that southern Europe will be able to end a social crisis highlighted by popular unrest and record youth joblessness.

The eurozone's fragility was evident in the muted shopping of Europeans during July, when retail trade volumes increased just 0.1 percent, Eurostat said in a separate release.

That was not enough to recoup June's 0.7 percent fall and was below economists' expectations of a 0.4 percent increase.

The eurozone's economy is set to shrink 0.4 percent this year, the European Commission says, and the return to growth in 2014 is likely to be less than in Britain and the United States.

EU policymakers say it is premature to say the eurozone's crisis is over and call on governments to press on with the painful reforms that can return business dynamism to the bloc, beyond the expected improvement in the third quarter.

"We do not interpret a second consecutive solid gain as the start of a strong upturn, Christoph Weil, an economist at Commerzbank, said in a report. The imbalances in the periphery have yet to be fully corrected and several core countries are increasingly facing problems."

[Reuters]

ekathimerini.com , Wednesday September 4, 2013 (14:34)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greeces lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Samaras pledges action after flash floods in Athens
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Nicosia says reforms are bringing results
6. No court hearings for civil cases
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greeces closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.