Thursday

9th Feb 2023

Eurozone recovering faster than expected

  • Rehn: Eurozone figures "encouraging" (Photo: ec.europa.eu)

The eurozone economy has moved out of recession, according to unexpectedly strong data published on Wednesday (14 August) by Eurostat, the EU's statistical agency.

Economic output rose by 0.3 percent across both the euro area and the EU28 during the second quarter of 2013, compared with the previous quarter.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Surprisingly, it was Portugal which, despite recent social unrest and political turmoil over its bailout programme, saw the biggest jump in growth, with its economy growing by 1.1 percent.

Finland and Germany recorded growth of 0.7 percent, while, France recorded a 0.5 percent growth rate, which will dampen concerns that the country's economy will remain stagnant in 2013.

The statistics indicate that the European economy is recovering faster than expected and could post an overall growth rate for 2013. In May, the EU executive forecast that the eurozone economy would contract by a further 0.4 percent over the course of 2013, with the bloc returning to modest growth in the second half of the year.

That said, Ireland and Greece, both of which are receiving financial rescue programmes from the EU, were among a group of seven countries which did not provide data.

In a statement, EU eurozone commissioner Olli Rehn described the news as "encouraging" and said that "the European economy is gradually gaining momentum."

However, he cautioned against over-confidence.

"There are still substantial obstacles to overcome: the growth figures remain low and the tentative signs of growth are still fragile; the averages hide important differences between Member States," he added.

Cyprus had the weakest figures, with its economy contracting by a further 1.4 percent on the previous quarter.

The Netherlands and Spain also remained in recession.

Eurozone economic confidence rises

Economic confidence in the 17-nation eurozone rose in July reaching the highest point since April last year. But eurozone unemployment stays record high.

Banks still eurozone's weak link, OECD warns

The eurozone's banks are in urgent need of extra capital if the bloc is to stabilise its fragile economic recovery, according to research by a leading economic thinktank.

Opinion

EU buries head deeper in sand over Israel's apartheid

While every European diplomat knows that a return to the "status quo" means maintaining the daily oppression, humiliation and anguish that comes with living under apartheid, the EU continues to acquiesce to a situation that gets worse by the day.

Latest News

  1. EU leaders attempt to hash out response to US green subsidies
  2. Russian diplomats in EU: unpaid wages, low morale
  3. Eight EU states press for more Turkey-style migrant swap deals
  4. EU buries head deeper in sand over Israel's apartheid
  5. Polish MEP also went on freelance Azerbaijan trip
  6. Why Europe's interminable compromises are a virtue
  7. Wales' message to Europe: 'We'll be back'
  8. MEPs to vote on risky 'hydrogen for home heating' rule

Stakeholders' Highlights

  1. EFBWWEU Social Dialogue review – publication of the European Commission package and joint statement of ETUFs
  2. Oxfam InternationalPan Africa Program Progress Report 2022 - Post Covid and Beyond
  3. WWFWWF Living Planet Report
  4. EFBWWEFBWW Executive Committee report on major abuses, labour crime and subcontracting
  5. European Parliamentary Forum for Sexual & Reproductive Rights (EPF)Launch of the EPF Contraception Policy Atlas Europe 2023. 8th February. Register now.
  6. Europan Patent OfficeHydrogen patents for a clean energy future: A global trend analysis of innovation along hydrogen value chains

Join EUobserver

Support quality EU news

Join us