Friday, August 13, 2010
Germany the powerhouse as Europe bounces back
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

If there's one way of calming market doubts about the eurozone's long-term existence, it is growth, and there was plenty of it in the second quarter, led by Germany's astonishing 2.2% jump. Even that was not Europe's best: Lithuania managed 2.9%. Of course it won't last, and there are special factors, but it tempers the story about sclerotic Europe being incapable of growing. The Eurostat release showing 1% quarterly growth (1.7% on a year earlier) for both the eurozone and the EU is here.

Meanwhile, construction output for the second quarter in the UK, up nearly 9%, offered the hope of a modest upward revision for Britain's 1.1% second-quarter growth.