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The British economy looked ever more moribund today after fresh evidence that our peers on the continent are reviving while we remain mired in recession.
Data covering the euro area showed the economy growing 0.4% in the third quarter of the year compared with Britain's shocking 0.4% contraction.
It was the first period of growth in the eurozone since the first quarter of 2008 and marked the end of the longest recession there since World War Two.
Within the region was Germany, growing at a healthy 0.7% during the three months, marking a sharp acceleration from the 0.4% rise during April, May and June.
France's GDP grew 0.3%, less than expected but still in positive territory. Economy minister Christine Lagarde said: “Full-year GDP for 2009 will contract but will enter 2010 with elan.”
Both economies pulled out of recession in the second quarter as big stimulus packages around the world boosted demand for exports, particularly to countries outside Europe.
Domestic demand also appears to be increasing slightly, thanks in part to the stimulus packages, although Europeans remain extremely cautious consumers.
Harvinder Sian, bond strategist at RBS in London, said: “This suggests Q4 and Q1 should be reasonable, but the markets' worry is what happens further down the line when fiscal and policy stimulus packages start being removed — what happens next?”
Reader views (1)
This is a clear sign and evidence that the United Kingdom should have cooperated with the European Union with a direct liaison from the Bank of England and the European Central Bank instead of continuing the pretence of being able to "go it alone!!" which is short sighted. And while we are "at it" the UK should sign-up to the European common currency-the Euro with out delay and ignore the sceptics as they are no use to the UK!!! They have had their day!!!
- Arthur Lincoln, Roeselare, Belgium, 13/11/2009 15:40
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