▲ Up
 
00:34 26-08-2016
MAIN АКИpress CA-News
About us On-line subscription
KazakhstanKyrgyzstanMongoliaTajikistanTurkmenistanUzbekistanWorld
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
17:21 Turkmenistan imports textile products worth $1.4 mln to Kyrgyzstan in 201617:09 Diplomats of Kyrgyzstan, Uzbekistan negotiate release of 4 Kyrgyz radio relay station workers detained by Uzbek police17:03 Kyrgyz, Turkmen presidents to attend 5-star hotel cornerstone laying ceremony in Issyk-Kul17:03 Kyrgyzstan looks for labs abroad for chemical examination of unidentified 4.5 tons of chemicals16:47 Uzbekistan considers disputable Ungar-Too Mountain area its territory, says detained Kyrgyz citizens crossed borders illegally16:47 Turkmenistan considering Kyrgyzstan's proposal to open Ashgabat-Bishkek-Urumqi flight16:18 Joint session of Kazakhstan's bicameral parliament set for Sep 116:15 4 workers of Kyrgyz radio relay station detained by Uzbek police allegedly for illegal border crossing, locals say16:12 Only 11 out of 30 joint Kyrgyz-Turkmen enterprises functioning today in Kyrgyzstan: Minister16:06 Kyrgyzstan wants to join Iran-Oman-Qatar-Turkmenistan-Uzbekistan transport corridor: Minister16:04 Criminal probe into unlawful issuance of residence permits to 996 Chinese citizens ongoing15:55 Kyrgyzstan-Turkmenistan trade turnover up 23.7% in Jan-May 201615:36 Kyrgyzstan spends less than 1% of health care funding on prevention of noncommunicable diseases15:29 Germany, Russia write off $43.5 million of Kyrgyzstan debt since year start15:27 USAID assists Kyrgyz farmers to explore business opportunities with local supermarkets15:21 Municipalities of Issyk-Kul, Jalal-Abad regions to improve life of citizens with support of Switzerland15:16 Over 2,500 teachers receive government certificates for completing reading instruction training15:12 India ranked world's top exporter of information, communication technology15:11 World population to rise 33% by 2050 to nearly 10 bn14:40 Baiterek holding, number of Polish companies sign cooperation deals
Astana
+28° C
Ashgabat
+31° C
Bishkek
+27° C
Dushanbe
+29° C
Tashkent
+32° C
Ulaanbaatar
+16° C
exchange rates
 
77.52
68.64
10.28
1.06
382.17
338.83
50.94
5.23
6.85
6.26
1.01
0.12
3286.53
2888.39
446.81
42.81
3.95
3.50
0.53
0.05

© AKIpress News Agency - 2001-2016. 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 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