Friday, 21 February 2014
European Economy Picks Up Pace for First Time in Two Years
The European economy showed sure signs of recovery as it recorded a growth on an annual basis in the last quarter of 2013. This is the first time in two years that such growth has been recorded. The GDP of the Eurozone rose by nearly grew by nearly 0.3% in the fourth quarter of 2013, in comparison with the third quarter of 2013. As compared to the same period in 2013, the growth was 0.5% higher. These figures were released by Eurostat on Friday.
According to reports, the higher growth was driven by the recovering economies of Italy and France. These positive figures were backed by the improved performance of other key European economies such as Germany, Spain, and the Netherlands.
France recorded growth of 0.3% over the period of the last quarter, and its growth rate was a little higher than expected, especially considering that it had registered a zero growth rate in the third quarter.
Germany, which is the strongest and biggest economy in the eurozone, recorded a growth rate of 0.4% in the last quarter of 2013, as compared to the previous quarter. The country’s robust export figures helped it exceed expectations, if it was marginally so.
However, this is far from a sure sign of recovery as experts say that the eurozone is still a long way from being out of the woods. As inflation slows in this region, it presents a risk of deflation. Moreover, the economy still hasn’t showed signs of generating enough jobs to bring down the levels of unemployment.