By Daisy Ayliffe - 15th August 2006
Growth in Germany and France has driven the eurozone to its fastest growth rate for six years in the quarter to June.
The eurozone’s stellar quarterly performance saw it top the group of industrial nations, outstripping Britain, Japan and the US.
Eurostat figures show GDP in the eurozone rose by 0.9 per cent in the second quarter of the year.
Meanwhile US growth was 0.6 per cent over the same period and 0.8 in the UK.
The figures were welcomed by authorities in Berlin where German economic minister Michael Glos said economic prospects were “exceptionally positive.”
But many economists are less sanguine about the 12-nation eurozone’s prospects for the rest of the year and have questioned whether the recovery will continue.
Experts say the region could be hit in coming quarters by a slowing US economy, higher eurozone interest rates and the negative impact that a strong euro has on exports.
Analysts also highlighted the one-off boost to Germany from this summer’s world cup and the threat to growth posed by next year’s scheduled rise in Germany’s VAT.
Have your say...
Please enter your comments below.