▲ Up
 
15:23 29-03-2015
MAIN Russian
About us On-line subscription
KazakhstanTajikistanUzbekistanKyrgyzstanTurkmenistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
'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."


Twitterfacebookprint
17:01 14.08.2014
LATEST NEWS
11:47 Kyrgyz Ombudsman, Russian human rights expert discuss protection of labor migrants11:32 Vice PM for Security, High Commissioner for Human Rights discuss reforms in Kyrgyzstan11:21 National Guard of Kyrgyzstan, General Command of Gendarmerie of Turkey sign protocol on bilateral relations11:10 Upper Naryn Cascade HPPs, Kambar-Ata – 1 to be built for sure – Russian Ambassador10:59 Kyrgyzstan attaches great importance to developing friendly relations with Kazakhstan – Speaker10:46 Presidents of Kyrgyzstan, Switzerland discuss prospects of further cooperation10:36 Kyrgyz journalists participate in conference on security media in Serbia10:24 UNHCR ready to consider return of ethnic Kyrgyz living in Pamirs of Afghanistan10:12 Total volume of EEU public procurement makes $280 bln – expert10:04 Russian government not to reduce donor aid for Kyrgyzstan – Ambassador17:27 International community urges Kyrgyzstan to revise bills on foreign agents and LGBT propaganda17:23 China, Kazakhstan set to enhance cooperation through silk road initiative17:18 Kazakhstan promises fair elections to be held17:14 Black ice forecasted for most regions of Kazakhstan17:09 Russia’s Ivanovo regions suggests cooperation to Tajikistan17:03 Tajik Foreign Minister holds talks with UN Secretary General16:59 Tajikistan to make every effort to evacuate its citizens from Yemen, Foreign Ministry claims16:53 Turkmenistan, OSCE discuss energy security16:51 Ukraine wants Turkmeninstan to resume gas supplies16:47 Turkmen President receives Chairman of National Assembly of Belarus
Astana
-10° C
Ashgabat
+15° C
Bishkek
+6° C
Dushanbe
+11° C
Tashkent
+10° C
exchange rates
 
69.14
63.90
10.28
1.11
200.64
185.50
29.85
3.22
6.21
5.75
0.92
0.10
2642.45
2484.15
400.29
41.38
3.81
3.50
0.56
0.06

© 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