Related News
Eurozone’s economy grows slower in Q3
Print Edition
The eurozone economy all but stagnated in the third quarter of the year with France’s recovery fizzling out and growth in Germany slowing.
The 9.5 trillion euro (US$12.8 trillion) economy pulled out of its longest recession in the previous quarter but record unemployment, lack of consumer confidence and anaemic bank lending continue to curb a more solid rebound.
In the three months to September, the combined economy of the 17 countries sharing the euro grew by a slower-than-expected 0.1 percent. In the previous quarter it rose 0.3 percent — the first expansion in 18 months.
The French economy contracted by 0.1 percent, snuffing out signs of revival in the previous three months. It had been expected to post quarterly growth of 0.1 percent and has now shrunk in three of the last four quarters.
German growth slowed to 0.3 percent, from a robust 0.7 in the second quarter, but Europe’s largest economy clearly remains in much better shape.
France is becoming a focus for concern within the currency bloc. The Bank of France predicts the economy will expand by 0.4 percent in the last quarter of the year but the government’s labor and pension reforms are widely viewed as too timid.
A report on French competitiveness by the Paris-based Organization for Economic Cooperation and Development warned that it is falling behind southern European countries that have cut labor costs and become leaner and meaner.
“To reduce the economic lag and lost time, France needs to keep up structural reforms,” OECD chief Angel Gurria said.
The report will be hard for the government to ignore since it was commissioned by President Francois Hollande.
German growth was fuelled by domestic demand. Exports faltered, another indication of the malaise gripping the rest of the euro zone.
“ECB interest rates are far too low for Germany. Germany will probably grow significantly more strongly than the eurozone,” said Joerg Kraemer, chief economist at Commerzbank. “Early indicators point to similar growth in the fourth quarter.”
The European Commission forecasts the eurozone will shrink by 0.4 percent over 2013 as a whole before growing by a modest 1.1 percent in 2014.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
