Saturday March 7, 2015 Search
Weather | Athens
20o C
11o 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)  
ECB asks for cut in recognized deferred tax assets
New NPLs in Jan-Feb put at 2 billion euros
Interest alive in property investment sector
Businesses reluctant to tap financing
Greece sends proposals, but no decision due at Mondays Eurogroup
Greece submitted to Eurogroup chief Jeroen Dijsselbloem Friday an outline of seven reform proposals to form the basis for discussion at Mondays meeting of eurozone finance ministers, but th...
Samaras braces for second round of in-party strife
After a marathon meeting of New Democracys MPs where party chief Antonis Samaras sought to affirm his status as top dog inside the conservative opposition, the former prime minister is brac...
Inside News
BASKETBALL
What a difference a year makes, for Olympiakos
Just over one year after Olympiakos's drabbing at the hands of Armani Milano, the Greeks returned to northern Italy and scored a nine-point victory to stay alone on top of their Euroleague g...
TRACK & FIELD
Tsatoumas just misses out on a Euro medal
Louis Tsatoumas narrowly missed out on a medal at the European Indoor Championships in Prague on Friday, as despite faring below his usual standard he was third until up to the last few jump...
Inside Sports
COMMENTARY
PISA, Schengen, mediocrity and isolation
Greeces most serious problem is not the economic and political crisis, though it did contribute greatly to it. At the root of our evil lies our great isolation, not only from our partners i...
EDITORIAL
New blood, fresh ideas
New Democracy needs new blood and fresh ideas. Former Prime Minister and conservative chief Antonis Samaras should be credited with keeping Greece on its feet and he is one of the very few p...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. What a difference a year makes, for Olympiakos
2. Tsatoumas just misses out on a Euro medal
3. ECB asks for cut in recognized deferred tax assets
4. New NPLs in Jan-Feb put at 2 billion euros
5. Interest alive in property investment sector
6. Businesses reluctant to tap financing
more news
Today
This Week
1. BoG chief Stournaras briefs PM Tsipras on ECB's decisions on Greece [Update]
2. Cash-strapped Greece repays first part of IMF loan due in March
3. Greek and German bruisers limber up for 'rumble in the eurozone'
4. Greek reforms list cites tackling evasion, fiscal savings, source says
5. Greece must repay loans in full, bailout fund head says
6. Greece sends new letter with details on reforms, sources in Brussels say
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. The Greek tax drama
3. Varoufakis to make six reform proposals at Monday's Eurogroup
4. Tsipras reversal draws Greek sympathy as party rumblings rise
5. Greece's lenders skeptical on new bills but focus on funding needs
6. A unionist agenda
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.