Eurozone emerges from recession with 0.3% GDP growth
The eurozone has come out of recession after recording GDP growth of 0.3% in the second quarter, bringing a record 18-month contraction to an end.
The positive results – which beat forecasts – came following stronger growth figures from Germany and France, both of which surprised on the upside earlier this morning.
The German economy grew 0.7% between April and June, while France reported unexpectedly strong growth at 0.5%, confirming it has emerged from a mild recession in the previous quarter.
France’s Insee statistics agency has predicted growth of just 0.2% after two previous quarters of negative growth and with record unemployment of nearly 11%.
The better-than-expected growth figures may be a sign that the single currency area is finally out of the longest recession in its history.
The 17-country block was stuck in a double-dip economic contraction for 18 months, but a recent pickup in industrial production and the construction sector have helped spur growth.
But despite the positive news, European equity markets have remained relatively flat this morning.
Germany’s DAX is trading flat at 8,421, while France’s CAC 40 is up just 0.3%. Spain’s IBEX is down 0.4% and Italy’s FTSE MIB ahs shed 0.45%, despite the strong economic data.