Saudi Arabia welcomes trilateral border treaty between Tajikistan, Kyrgyzstan, and Uzbekistan    Trump prepares to unveil sweeping new US tariffs on 'Liberation Day'    At least 22 civilians killed in Israeli strike on UNRWA clinic in Gaza    UK says it won't jump into US trade war as Starmer urges calm response to tariffs    Russia, Ukraine trade fresh accusations of violating US-brokered energy ceasefire deal    Swedish table tennis legend Jörgen Persson appointed head coach of Saudi national team    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Over 1 million pilgrims benefit from golf cart service at Grand Mosque during Ramadan    Visitors welcomed with Eid initiative at Thee Ain Heritage Village in Al-Baha    Tebuk emir reviews rain response in Tayma    Saudi Arabia considers rent cap as part of major real estate reforms    Messi's bodyguard banned from touchline at Inter Miami games    Screen time in bed linked to insomnia, study finds    Haramain High-Speed Railway transports over 1.2 million passengers during Ramadan    Saudi Transport Authority says passengers can ride for free if taxi meters are off    Ministry of Education forms 425 community partnerships with SR653 million impact    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    T1 CEO confirms Gumayusi's return for LCK Spring after lineup shakeup    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Germany leads euro zone to stronger growth
Published in The Saudi Gazette on 14 - 08 - 2010


Tags: BUSINESS CITYSCAPE)
BRUSSELS - The economy of the 16 countries that use the euro expanded by a better-than-expected 1 percent during the second quarter as growth engine Germany expanded at its fastest pace since reunification two decades ago.
Thursday's figures show the euro zone grew at its fastest rate in nearly four years - and faster than the US during the same quarter.
Germany posted its best growth since reunification on Friday, driving Europe past the United States in a four-year record but analysts warned of a recovery that may be peaking out.
Accelerating growth in Britain, France and even Spain initially nudged European stock markets higher but the early optimism faded as investors prepared for US data later in the day after a series of poor figures over recent weeks stoked fears of a double-dip recession.
With 2.2-percent growth between April and June, Germany was “playing in a league of its own,” according to Brussels-based ING economist Carsten Brzeski.
After suffering its worst post-war recession in 2009, “we are now experiencing XL growth,” Economy Minister Rainer Bruederle said, the best since 1990, when Germany was reunited after a 45-year Cold War division.
After managing just 0.2 percent in the first quarter, growth beat forecasts for 0.7 percent and outpaced that of the US, which posted a quarterly gain of 0.6 percent - down from 0.9 percent between January and March.
But while Amsterdam-based Nick Kounis of ABN AMRO said worries over a “double-dip” recession now center “on the other side of the Atlantic,” he admitted the overall picture could be “misleading.”
Spending cuts in almost all countries will make the road “bumpy” and “long,” he stressed, adding that “the deepening of Greece's recession is a timely reminder.”
Greece's economy shrank 1.5 percent in the second quarter after 0.8 percent in the first as savage cuts agreed with the EU and the International Monetary Fund in exchange for a massive bailout loan hit home.
On the upside, Britain posted a 1.l percent expansion and France - Europe's biggest economy after Germany - 0.6 percent, providing welcome relief after recession last year of 2.5 percent.
Paris now expects growth of 1.4 percent this year, although Oscar Bernal of ING in London also warned of a slowdown, citing one of the euro zone's largest fiscal deficits.
Spain, which only escaped recession in the first quarter, saw its economy grow by 0.2 percent, while the Netherlands and Austria each performed strongly with a 0.9 percent gain.
Euro zone's trade balance delivered a 2.4-billion-euro surplus in June.
That defied expectations from just a couple of months ago when Europe was threatened by a severe government debt crisis.
The US grew by 0.6 percent during the April to June period compared to the previous quarter.
The euro zone economy also beat market forecasts for a 0.7 percent rise and the muted 0.2 percent growth from the first quarter.
Governments across the region - particularly Greece, Spain, Ireland and Portugal - are slashing spending programs and raising taxes to cut their ballooning debt levels, depriving the economy of stimulus from government spending. Additionaly, the US, a major trading partner, is losing momentum.


Clic here to read the story from its source.