Eurozone Exits Recession
The 16-country Eurozone left the recession after Germany and France posted further growth during the third quarter. The news strengthened the Euro currency while the US Dollar lost ground against the other main currencies.
Germany and France improved for the second straight quarter, posting 0.7% and 0.3% respectively. Germany, France and Italy (0.6% growth), comprise about two-thirds of the aggregate output of the zone.
European Union statistic’s office Eurostat reported that the Eurozone’s growth was 4% while the 27-nation European Union had 2% growth.
The growth’s slowdown factor came from United Kingdom and Spain as both countries continue to struggle, dropping 4% and 3% respectively. Ireland, who declared national bankruptcy, is still in the negative value. Great Britain is not part of the Eurozone.
The United States economy posted at 3.5% increase signaling that it may be on the way out of recession.
Fears now move to a double-dip recession, which is the return to recession after a short-lived recovery. International Monetary Fund (IMF) chief Dominique Strauss-Kahn does not believe that however. He stated, “Our forecast has that, not only in the United States but also the rest of the world, 2010 will be a year of recovery.”