European Union - economy

The recession in Europe is officially over

Article published on the 2009-11-13 Latest update 2009-11-13 14:07 TU

(Photo: DaveOinSF via Wikimedia)

Europe's deepest recession since World War II officially ended on Friday when the world's biggest trading bloc returned to growth alongside Japan and the US. The 27-nation European Union posted economic expansion of 0.2 per cent for the third quarter.

Expansion of 0.7 per cent in Germany and 0.3 per cent in France lie behind the upturn.

Italy, which has been labouring under a massive public debt, experienced growth of 0.6 per cent, while the Netherlands recorded a 0.4 per cent expansion.

Great Britain and Spain still lag behind other European countries with contractions of 0.4 per cent and 0.3 per cent respectively.

Poland, the main player in Eastern Europe, has yet to release its economic data for the quarter.

The European figures compare with a 0.9 per cent improvement in US economic output. Japan had already come out of recession in the second quarter with 0.6 per cent growth.

Analysts say the figures are unlikely to encourage governments to change broad economic policies. A question hangs over whether - and when - massive state support can be withdrawn without derailing recovery.

Consumers are said to fear a double blow of higher repayments on loans and rising prices when state support is eventually scaled back.

A spokesperson for the EU Commissioner for Economic Affairs said there will only be “gradual” improvement through 2010.

Earlier this month, the Commission forecast a 0.7 growth in the eurozone in 2010. Unemployment is also expected to climb to 10.7 per cent in the same year.

dc670c2bc9e9">