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Eurozone growth lacks momentum – report
November 14, 2013, 12:00 pm

GDP growth figures for the third quarter show the eurozone still struggling to overcome stagnation and recession [Getty Images]

GDP growth figures for the third quarter show the eurozone still struggling to overcome stagnation and recession [Getty Images]

The European Union’s statistics office on Thursday released a report showing sluggish economic recovery in the 17-nation eurozone.

Overall growth in the zone registered at only 0.1 per cent for the third quarter, down from 0.3 per cent in the second quarter.

European markets are still wary that the eurozone has not fully pulled out of recession, possibly prompting the Central Bank to intervene and lower interest rates.

At best, the new figures show that the eurozone is in downturn.

Despite falling within forecasts, Germany’s economy grew by only 0.3 per cent in the third quarter, down from 0.7 per cent growth in the second.

France fared worse, failing to meet forecasts of at least 0.1 per cent GDP growth. Instead, it shrunk 0.1 per cent (or -0.1 per cent growth) on declining manufacturing and investment data.

Italy, meanwhile, is still in recession with -0.1 per cent growth for successive quarters. Economists expect Italy to show positive growth in mid-2014, but it is unclear whether persistent unemployment at 12.5 per cent will hinder momentum.

Unemployment in the eurozone continues to plague recovery efforts. While overall jobless figures for the zone are at an average of 12.2 per cent, it grew to 11.1 per cent in recession-prone France, and above 26 per cent in both Greece and Spain.

Germany’s unemployment rate, however, decreased from September to October and is at 5.2 per cent – the best number since 1992, analysts say.

Source: Agencies

 

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