Author Topic: Eurozone GDP up 0.4%, most in 2 years  (Read 995 times)

Offline thaiga

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Eurozone GDP up 0.4%, most in 2 years
« on: May 13, 2015, 06:06:09 PM »
Eurozone GDP up 0.4%, most in 2 years

FRANKFURT —Euro-area growth quickened in the first quarter as stronger-than-predicted performances from France and Italy made up for weaker momentum in Germany.

Gross domestic product in the region rose 0.4% in the first three months of the year after expanding 0.3% in the previous three months, the European Union's statistics office in Luxembourg said Wednesday. That's in line with the median of 42 estimates in a Bloomberg survey. Greece fell back into recession.

The Eurozone economy benefited from the sharp drop in oil prices since the second half of 2014, a weaker currency and a boost to confidence from the prospect of more European Central Bank stimulus. Policy makers have warned that the upswing may not be sustainable unless governments step up economic reforms, while there are also risks related to the Greek crisis that threatens to splinter the currency bloc.

"Consumer spending saw appreciable expansion and was a significant growth driver," said Howard Archer, chief European economist at IHS Global Insight in London. "It also looks likely that net trade was a significant drag on Eurozone GDP in the first quarter as muted global growth appears to have limited export growth despite the help coming from the weakened euro."

The single currency pared gains after the report and was little changed at $1.1218 at 4.21pm Bangkok time. The Stoxx Europe 600 Index was up 0.9%.

German growth  + Greek crisis MORE HERE: Bangkokpost
Anyone who goes to a psychiatrist should have his head examined.