17-nation euro-zone sees best economic growth in three years

Linda Young – AHN News Writer

London, United Kingdom (AHN) – The 17-nation euro-zone economy grew at its most robust annual rate in more than three years during the first quarter of 2011.

However, economic growth was not uniform across all euro-zone member states with Spain and Italy growing less than expected.

Economic growth in France and Germany boosted euro-zone growth to 0.8 percent during the first three months of the year, which was up from the 0.3 percent growth registered during the last three months of 2010.

Germany grew at 1.5 percent and France registered a 1 percent growth rate. Even heavily indebted Greece managed to match the average growth rate of 0.8 percent.

Italy grew at only 0.1 percent while Spain grew at 0.3 percent. Portugal fell into recession after its economy shrank for the second consecutive quarter.

In addition, the robust growth of the euro-zone overall means the European Central Bank will likely raise its interest rates again in July. That tighter monetary policy will pose a hardship for member nations struggling with serous debt and economic problems.

Article © AHN – All Rights Reserved

View full post on All Stories

Comments are closed.

Powered by Yahoo! Answers