Weak GDP figures for euro zone economies

| May 12, 2010 | 0 Comments

Figures published today by the European Union’s statistics office, Eurostat, have revealed a poor quarter one performance for many euro zone nations.

According to Eurostat, Greece’s debt-ridden economy contracted by 0.8% in first three months of the year, while Spain just emerged from recession with 0.1% growth.

Meanwhile, France grew by just 0.1%, slowing from the 0.5% growth in the previous quarter.

However, Italy and Germany posted growth of 0.5% and 0.2% respectively.

The euro zone as a whole grew by 0.2%, after stagnating in the previous three months.

Howard Archer, of IHS Global Insight, expects the euro zone’s improvement to gather momentum.

“The euro zone’s upturn is expected to gradually become more firmly established in 2011, when GDP growth is forecast at 1.5%, helped by a stabilisation and then gradual improvement in labour markets as well as by stronger global growth,” he said.

However, tough austerity measures which are being implemented in many euro zone nations to reduce their deficits are expected to hamper growth in the coming years, according to many economists.

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