▲ Up
01:29 30-11-2015
MAIN АКИpress CA-News
About us On-line subscription
'Broken down' French economy grinds to a halt

Bishkek (AKIpress) - eurozone The eurozone recovery ground to a halt in the second quarter after German output shrank and France flatlined, official data showed today.

Hopes for an upturn for the 18-nation bloc have been hit by the impact of tit-for-tat sanctions with Russia over the Ukraine crisis. Bank of England governor Mark Carney cited this week the "modest" pace of growth in the eurozone - Britain's biggest trading partner - as a key challenge facing the UK, Belfasttelegraph.co.uk said.

Markets had been expecting the eurozone to post 0.1% growth but even this meagre expansion proved too much and instead it was recorded as 0%, following a 0.2% improvement in the previous period. Germany shrank by 0.2%, slightly worse than feared, as its trade balance worsened, following growth of 0.7% in the first quarter.

Meanwhile, France posted zero expansion for the second successive quarter, as its finance minister immediately halved its growth forecast for the year to 0.5%. The European Central Bank has slashed interest rates to record lows as policy-makers try to stave off the threat of a damaging deflation spiral in the stagnant economic zone.

But experts believe fears of an escalation in the Ukraine crisis are holding back investment and postponing some spending. Latest figures from Italy show it returned to recession in the second quarter, though Spain and Portugal bucked the gloomy trend with each country posting growth of 0.6% for the period.

The eurozone's struggles contrast with the UK, which is expected to see gross domestic product (GDP) growth of 0.8% for the quarter confirmed tomorrow. It is forecast to post the strongest performance among major world economies this year.

Peter Vanden Houte of ING Bank said the eurozone figure was even worse than already-downbeat consensus expectations. "Today's figures show that the upturn remains too weak to withstand external shocks, meaning that GDP growth will probably remain stuck in stop-and-go mode. It now looks very likely that GDP growth for the whole of 2014 will remain below 1%."

Chris Williamson, chief economist at Markit, said: "A stalling of economic growth in the second quarter raises concerns that the euro area is sliding back into a triple-dip recession. "Many, including the European Central Bank, point to survey data suggesting such fears are overplayed, and that growth will revive as previously-announced stimulus take effect. "But the weakness of economic growth will certainly fuel louder calls for the ECB to do more to reinvigorate growth across the single currency area."

17:01 14.08.2014
20:22 Over 150 cars left at Turkmen-Kazakh border for more than six months19:27 Kazakhstan urges Central Asian countries to consolidate anti-terrorist efforts18:53 Professional lyceums of Leilek district receive ADB’s 20 million soms assistance18:25 Russia to suspend visa free regime with Turkey from January 117:31 Six millionth Kyrgyzstani solemnly discharged from hospital16:08 Two-day OSCE-organized youth conference concluded in Bishkek14:52 Ex-Deputy PM Mamytov: World community should know whether Turkey has relations with IS14:10 New school built in Alamedin funded by Jerui – PM Sariyev13:44 Declaration-2014: Ex-Defense Minister Omuraliyev earned over 582 thousand soms in year12:09 19 police officers receive certificates of completion of training courses from Police Academy11:46 Turkey suspends flights over Syria after incident with Russian Su-2411:21 Residents of Kyzyl-Kiya send humanitarian aid to quake-affected people of Osh region10:43 Dushanbe hosts VI meeting of the deputy foreign ministers of Central Asian countries10:04 Prize fund of AFC Champions League increases to $4.5 mln, AFC Cup - to $1.5 mln09:40 Ministry of Justice holds seminar on conducting forensic examinations for law enforcement agencies of southern regions of Kyrgyzstan17:58 Speaker of Mongolian Parliament receives Russian Ambassador17:47 Morin khuur concert to be held this weekend in Ulaanbaatar17:33 Turkish SosyalBen Association holds special training for Mongolian children17:16 Ulaanbaatar builds new kindergarten17:04 Mongolia's Khentii Got Talent 2015 kicks off today
° C
° C
° C
° C
° C
exchange rates

© AKIpress News Agency - 2001-2015. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to www.akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75