Eurozone emerges from recession

PanARMENIAN.Net - The eurozone has emerged from recession after a record 18 months of economic contraction, BBC News reports.

Across the bloc, GDP grew by 0.3% in the second quarter of 2013, slightly ahead of forecasts. The growth was widely expected after the German economy rose 0.7% between April and June. However, the overall figure masks the mixed economic fortunes among the countries that make up the 17-country eurozone area.

Germany and France both posted stronger-than-expected growth, but Portugal, among the smallest and the weakest eurozone economies, showed the fastest growth, at 1.1%. The country was one of three that had to take a multi-billion-euro bailout.

But Spain, which had to seek outside support for its struggling banking sector, saw its economic output fall by 0.1% on the quarter.

Italy and the Netherlands both saw growth fall by 0.2%.

European Commission Vice-President Ollie Rehn said the figures suggested the European economy was gradually gaining momentum, but added there was no room for complacency.

"There are still substantial obstacles to overcome: the growth figures remain low and the tentative signs of growth are still fragile," he said. "A number of member states still have unacceptably high unemployment rates; the implementation of essential, but difficult reforms across the EU is still in its early stages. So there is still a very long way to go."

Analysts from Capital Economics said: "The return to modest rates of economic growth in the eurozone as a whole won't address the deep-seated economic and fiscal problems of the peripheral countries."