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Title: Greece helps eurozone post 0.8 percent Q1 growth
Source:
businessweek.com
URL Source: http://www.businessweek.com/ap/financialnews/D9N6FMM80.htm
Published: May 13, 2011
Author: PAN PYLAS
Post Date: 2011-05-19 11:12:46 by Godwinson
Keywords: None
Views: 6280
Comments: 8
THE ASSOCIATED PRESS May 13, 2011, 5:35AM ET
Greece helps eurozone post 0.8 percent Q1 growth
By PAN PYLAS
LONDON
After nearly three years of economic turmoil, Greece returned to growth in the first three months of 2011, helping the wider eurozone grow by more than anticipated.
Eurostat, the EU's statistics office, said Friday that the economy of the 17 countries that use the euro grew by a quarterly rate of 0.8 percent in the first three months of the year. That was more than double the 0.3 percent growth posted in the previous three-month period and ahead of analysts' expectations for a 0.6 percent increase.
In year-on-year terms, the eurozone economy grew 2.5 percent, more or less in line with what many should be the eurozone's long-term average.
"The eurozone is therefore significantly outperforming all other major developed economies at the moment," said Chris Williamson, chief economist at Markit.
By comparison, Eurostat said the U.S. grew by a 0.4 percent quarterly rate in the first three months of the year -- the U.S. uses annualized figures to collate its growth statistics.
Unsurprisingly, given its sheer size, Germany was the main reason the eurozone grew by more than expected. Its forecast-busting 1.5 percent growth during the quarter means the EU's largest economy has now made up all the output lost during the recession.
Perhaps more surprisingly, given the debt quagmire it is currently in, Greece posted solid growth of 0.8 percent -- its first economic expansion since the fourth quarter of 2009. However, the country's recovery is dwarfed by the scale of its contraction in the year prior and after that solitary quarter. In the final three months of 2010, for example, Greece, the EU's first bailout victim, shrank by a colossal 2.8 percent.
Although the Greek level of growth may have surprised somewhat with its first quarter growth, Portugal returned to recession. Its 0.7 percent quarterly decline follows the 0.6 percent drop recorded in the previous three-month period -- a recession is classified as two consecutive quarters of negative growth. Portugal is the third eurozone country to agree to a bailout, following Greece and Ireland.
Separately, the European Commission, the EU's executive, said it expects the eurozone economy to grow 1.6 percent in 2011 following a 1.8 percent rebound in 2010. Germany is expected to grow 2.6 percent this year but Greece is anticipated to shrink another 3.5 percent this year following last year's 4.5 percent contraction.
"The main message in our forecast is that the economic recovery in Europe is solid and continues, despite recent external turbulence and tensions in the sovereign debt market," said Olli Rehn, the European Commissioner for Economic and Monetary Affairs.
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"The eurozone is therefore significantly outperforming all other major developed economies at the moment," said Chris Williamson, chief economist at Markit. By comparison, Eurostat said the U.S. grew by a 0.4 percent quarterly rate in the first three months of the year -- the U.S. uses annualized figures to collate its growth statistics. AMERICAN CAPITALIST LOOOOSERS!!! LOOOSERS!!! EUROPEAN SOCIALIST WINNERS!!!!!!!!!
Top • Page Up • Full Thread • Page Down • Bottom/LatestEuro-Socialist Market Performs Better Than American Capitalism
Replies to Comment # 1. the eurozone economy grew 2.5 percent, more or less in line with what many should be the eurozone's long-term average.
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