Germany, France drive Euro-zone recovery
14 Aug 2009
The euro-region economy shows signs of recovery in the second quarter showing better-than-expected growth in gross domestic product (GDP) led by Germany and France.
GDP of the 16-nations that use the euro currency fell 0.1 per cent from the first quarter, when it plunged 2.5 per cent, the European Union's statistics office in Luxembourg said yesterday. The 16 EU countries are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
Some analysts say the new figures may show the worst of the recession has passed.
Though fragile, in Germany, second-quarter GDP rose a seasonally adjusted 0.3 per cent from the first quarter, when it dropped 3.5 per cent. The French economy also expanded 0.3 per cent in the latest quarter.
Government and household spending were among the main drivers of second-quarter growth in Germany and France.
German chancellor Angela Merkel has committed 85 billion euros to revive the economy, while French president Nicolas Sarkozy's stimulus package is worth about 30 billion euros.