Some positive news has emerged with regard to the state of the EU economy with the publication of statistics suggesting Germany and France have emerged from the worst recession in decades earlier than predicted.
According to the data, which was released by the European Union's statistical analysis body Eurostat, both countries achieved a 0.3 per cent increase in gross domestic product during the second quarter of the year, news which surprised economists who had been expecting a downturn of 0.3 per cent in both cases.
With most national economies in the EU registering a slowdown in the rate of shrinkage in April, May and June, the signs are that resilience in terms of consumer and public spending - buoyed by support from governments - may be partly responsible for the positive trend.
The unanticipated rise in productivity meant that the eurozone contracted by just 0.1 per cent in the second quarter, a notable improvement on the 2.5 per cent decrease observed during the first three months of the year and the 0.5 per cent drop that had been forecast.
“The overall story is that the eurozone economy has been pulled out of recession by a combination of the revival in the global economy and government fiscal stimulus,” said Nick Kounis, an economist at Fortis Bank in Amsterdam, told the Financial Times.
Many economists are now predicting the eurozone will swing back to growth in the second half of the year, but major challenges will remain in the form of unemployment, reduced lending availability and a falling away of stimulus funds.
The economies of Greece and Portugal also expanded by 0.3 per cent during the same period, while Austria and Belgium slumped by 0.4 per cent. The Italian and Dutch economies shrank by 0.5 per cent and 0.9 per cent respectively.
However, in each case, the rate of decrease was not as severe as it was during the first quarter.
