BUSINESS

Sluggish economic growth in Eurozone

The debt-ravaged Eurozone saw a meagre economic growth of 0.2 per cent in the three months to June amid sluggish recovery in Germany and France.

The data released by European Union's statistical agency Eurostat on Tuesday showed that the Eurozone witnessed an economic growth of 0.2 per cent in the April-June quarter, against 0.8 per cent in the first three months of 2011.

The Eurozone, a grouping of 17 nations that share the common currency euro, has been grappling with severe debt turmoil.

“GDP increased by 0.2 per cent in both the euro area and the European Union (grouping of 27 nations) during the second quarter of 2011...,” Eurostat said in a statement.

Germany stagnant

European economic heavyweights Germany and France saw slow growth in the June quarter. While Germany's GDP rose by just 0.1 per cent, French economy stagnated in the second quarter with zero growth. The euro area was expected to see at least 0.3 per cent growth in June quarter. Slow expansion could also force the European Central Bank (ECB) to revise its hawkish monetary stance to bolster economic activities in the euro zone.

In the June quarter, Spanish economy rose 0.2 per cent while Italy's GDP grew 0.3 per cent. Apart from European debt crisis, the global financial system is also battling turbulent economic conditions in the world's largest economy the U.S. Rating agency S&P recently stripped the U.S. of its coveted 'AAA' rating, a move that created mayhem in global financial markets. — PTI

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