Eu­ro­zone growth eases mod­estly in Q2 as France fal­ters

The Pak Banker - - BUSINESS -

BRUS­SELS: Eco­nomic growth in the 19-coun­try eu­ro­zone eased slightly in the sec­ond quar­ter of the year, of­fi­cial fig­ures showed Fri­day, as a sharp slow­down in France off­set a solid ex­port-re­liant per­for­mance by Ger­many.

Euro­stat, the Euro­pean Union's sta­tis­tics agency, said quar­terly eco­nomic growth across the re­gion was 0.3 per­cent, down slightly from the 0.4 per­cent recorded in the first three months of the year. The de­cline was widely an­tic­i­pated across fi­nan­cial mar­kets. The fig­ures high­lighted a grow­ing di­ver­gence be­tween the re­gion's two big­gest economies. While the big­gest, Ger­many saw growth rise to 0.4 per­cent from 0.3 per­cent in the quar­ter be­fore, France saw no growth at all fol­low­ing a strong 0.7 per­cent rise in the first three months of the year.

The Ger­man fig­ures weren't wholly pos­i­tive as the in­crease in growth was largely due to solid ex­ports as the fall­ing euro helped com­pa­nies in in­ter­na­tional mar­kets. Over the past year or so, the euro has fallen to mul­ti­year lows against the dol­lar. De­spite a re­cent ap­pre­ci­a­tion to around $1.11, the euro is still trad­ing at rel­a­tively low lev­els, and that should con­tinue to help ex­porters, par­tic­u­larly in Ger­many. While Ger­many man­aged to eke out some more growth in the sec­ond quar­ter, the French econ­omy stag­nated as in­vest­ment eased and con­sumer spend­ing was lack­lus­ter.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.