European growth loses momentum in third quarter
Posted by cvbasheer on November 13, 2010
The European economy lost momentum during the third quarter as global demand slowed and governments cut spending, data released on Friday show.
The gross domestic product of the 16-member eurozone expanded by 0.4 per cent in the three months to the end of September, after growing a solid 1 per cent during the second quarter, according to Eurostat, the European Union’s statistics office.
The increase was slightly less than analysts had projected. The consensus forecast was for Eurostat to say that the currency bloc expanded by 0.5 per cent.
Year-on-year, the eurozone economy expanded by 1.9 per cent in the third quarter – the same as for the three months to the end of June.
The publication of the figures came amid fresh worries that the EU could be forced to mount another bailout to help financially strapped Ireland, which is struggling with high debt levels.
After shrinking last year by 4.1 per cent in the wake of what has been dubbed the Great Recession, the eurozone economy is forecast to grow by about 1.6 per cent in 2010.
The broader 27-member EU also expanded by 0.4 per cent in the third quarter, compared with 1 per cent in the June quarter. Year-on-year, the EU economy expanded by 1 per cent in the three months, to the end of September.