Eurozone recession ends, as the 17-nation’s longest-ever recession in the came to an end in the second quarter of the year, official reports confirmed on Wednesday.
Encouraged by the consumption and growth in Germany and France, Euro-zone as a whole broke out of recession in the second quarter, however the high number of unemployment amongst other problems in Europe still need recovery.
Eurozone Recession’s Main movers & Shakers
According to Eurostat, the European Union’s statistics office, the improvement was aided by two of the largest economies in the 17-nation euro-zone which assisted pull the region as a whole, with a rise in the economic output by 0.3% in April till the month of June
The main movers were Germany and France, as Germany’s GDP grew 0.7% in the second quarter, compared to 0.1% in the first quarter and the French gross domestic product (GDP) edged up 0.5%, the National Institute of Statistics and Economics Studies (INSEE) reported. The current economic growth is the strongest for nearly two years.
Despite of the improving growth in the region, unemployment has risen to 12.1% and economists raise concerns on new debt crises may arise.
Among the improving countries in the eurozone is Portugal, which grew by a surprising 1.1%. Portugal was amongst one of the weakest economies with a two-year deep recession. Meanwhile in Spain, the economy reduced by 0.4%.
Cyprus economic tightening deepened, as the economy reduced by 5.6% at an annual rate, slightly better to the previous record of 6.8% in the first quarter.The Economy of Greece, which fell and declined though almost 20 reported quarters, is showing signs of a possible breakthrough.
Regardless of the encouraging news, most of the governments in Europe still have a long way to go, as they still have to face many more spending cuts, the high-record of unemployment and other debt crises to tackle.
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