The Eurozone saw better-than-expected growth in the second quarter of 2010 as a result of strong economic growth in Germany – one of the largest economies in the region.
Between April and June, Germany’s economy grew by 2.2 per cent, driven by strong exports and the recovery of the construction industry. The expectations stood at just 1.4 per cent.
The eurozone as a whole also did well in the second quarter, rising by 1 per cent, which is major improvement on the first quarter, where the region grew by just 0.2 per cent.
Analyst Carsten Brzeski at ING said, "After three difficult months of eurozone battering, today's numbers will help to heal the eurozone's wounds. For the first time since the second quarter of 2009, the eurozone outpaced the US economy."
The US economy grew by 0.6 per cent in the second quarter, which shows recovery is slowing down across the Atlantic.
In addition, it is now official that every eurozone country is out of recession, with the exception of Greece.
Caution is still being urged by most analysts who are concerned that the weaker nations could still drag down the more buoyant economies.
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