Eurozone has now emerged from the recession after the record eighteen months of the economic contraction.Around the bloc, the GDP increased by 0.3% during2nd quarter of the year 2013, a bit ahead of the forecasts.This growth was largely expected after German economy increased 0.7% during April as well as June.
However, this overall figure does mask mixed fortunes economicallyamong countries which make up eurozone area, having 17 countries.France and Germany both posted growth which was stronger than was expected, expanding 0.5% and 0.7% respectively.
Among weakest and the smallest eurozone economies, Portugal showed fastest growth, with 1.1%.This country was 1among3whichtook a bailout of multi billions of euros.
Though Spain, whichsought outside support regarding its struggling sector of banking, saw its output economicallyfall by exact 0.1% overthis quarter.Netherlands and Italy both saw the drop of output by 0.2%.
European Commission VP Olli Rehntold that the figures also suggested that European economy gradually was gaining momentum, though, added that there wasn’t any room for the complacency.He said that substantial obstacles still have to be overcome, that is the low growth figures and fragile tentative signs regarding growth.
He also said, “A number of member states still have unacceptably high unemployment rates; the implementation of essential, but difficult reforms across the EU is still in its early stages. So there is still a very long way to go.”
Capital Economics’analysts said that return to the modest economic growth rates in total eurozone won’t address deep-seated fiscal and economic problems of peripheral countries.