Wednesday, 18 August 2010

Germany the powers in Europe for the second quarter were better than expected

Economic upturn in Germany powered Europe to more growth faster than expected from 1 percent in the second quarter of this year, the European Statistical Office said on Friday.

The 16 euro area and the EU of 27 members broader achieved robust growth of 1 per cent in the three months ended in June with Europe now expanded at its fastest rate since the beginning of the global economic crisis in 2008.

Analysts expected the euro currency block to grow by 0.7 percent.

This occurred from the largest economy in Europe, Germany shrugging to concerns about the global perspective to record growth of 2.2% compared with the first quarter.

Year after year gross domestic product (GDP) in the EU and the euro area grew by 1.7%, representing an acceleration marked in the first quarter.

While the EU saw an annual rate of 0.5 percent in Q1, the euro area has been an annual growth of 0.6 per cent during the first three months of the year.

"What was decisive for the impulse was cyclical, forces such as global recovery and the low rates of interest," said economist Commerzbank Christoph Weil.

Europe only achieved at the end of last year out of what was the largest in a generation. recession for the first time in 12 months, data growth in the second quarter of the Friday show the zone euro, surpassing the United States.

However, economic growth in Europe is widely expected that less buoyant during the second half of the year, since it slows down the world economy and Governments around the world are moved back the deficit executed during the recession.

"In total, the euro area behaves very well at the moment", said Jennifer McKeown, Europe with the economics economy capital research group senior economist.

"But the glances of recovery to falter by long and expansion in the meantime set will do very little to erode the spare capacity that created during the recession", said.

After the last year in a dramatic percent 4.1 from what has been dubbed the great recession reduction, economic growth in the euro area could now come in, approximately 1.5% in 2010, some economists predict.

German economic expansion also helped compensate more tepid growth rates in countries such as Spain and Portugal, which were affected by a crisis debt this year sparked by concerns about the finances of the State of State of Grecia.Grecia hired by 1.5 percent in the second quarter.

Debt crisis sent the euro to a minimum of four years in June, which in turn has contributed to the shore of the international competitiveness of the euro area, and consequently boost exports.

Economic performance in Germany highlighted among fellow EU.Del block other major economies, Britain has been quarterly growth of 1.1 per cent, France recorded 0.6 percent and growth in Italy was by 0.4 percent.

The French result also exceeded the expectations of the expertos.Los analysts had expected second largest economy in the euro area to grow by 0.5 percent in the second quarter compared with the first quarter.

It was driven by a pickup in exports and private consumption, and an expansion in the investment company, said the INSEE Statistics Office based in Paris.

Tiny, Lithuania with a rate of growth of 2.9 percent, better than Germany performed only in the quarter.

At the other end of the scale, the Greek economy reduced as bits of the Q1 Gobierno.En spending cuts, the economy contracted by 0.8 percent.

Spain and Portugal, however, recorded a marginal positive growth of 0.2%, consolidating a trend that began in the first States trimestre.Ambos were in recession until the end of 2009.

Separately, Eurostat reported seasonally adjusted exports of us grew up in a 5.8 percent in June compared to may, while imports grew a 5.2 by ciento.Ese performance reduced trade deficit of the EU 14.8 million ($ 19 million) EUR 9.6 million euros.


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