2010-11-12 10:12:36
Siemens factory Economic recovery has been reflected in positive figures from
industrial giant
The pace of economic recovery has slowed in Europe's major economies, according
to official estimates.
Germany, Europe's largest economy, has seen a sharp slowdown in the third
quarter, with growth of 0.7% compared with the record expansion of 2.3% it
reported in the previous three months.
In France, GDP grew by 0.4% between July and September, compared with growth of
0.7% in the previous quarter.
The 16 eurozone members grew 0.4% on average, down from 1% growth before.
Italy also saw its rate of recovery decline, to 0.2% from 0.5% in the second
quarter.
But in crisis-hit Greece, the economy contracted at a slower rate of -1.1%,
compared with -1.7%.
Last month, figures revealed that the UK economy had grown by 0.8% in the third
quarter.
'Solid growth'
Germany's growth rate in the second quarter - now revised from 2.2% to 2.3% -
was the fastest since the country reunified.
Announcing its first estimate of third-quarter growth, the German statistics
office Destatis said the upturn was continuing.
But it said the slower pace had been expected, given the record result in the
second quarter.
Demand for its goods is crucial to the world's second largest exporter, and
Destatis said both domestic and foreign demand had made a positive contribution
to growth.
It said the reasons for expansion were wide-ranging, with household and
government expenditure, demand for machinery and equipment, as well as imports
and exports all contributing.
France's finance minister Christine Lagarde said this week that the economy was
recovering in a "solid way".
France is facing a record budget deficit of 7.7% of GDP this year.
It has announced government spending cuts and the end of some tax breaks to try
and bring it down.
Its plans to raise the pension age have faced fierce opposition.
The government is forecasting economic growth of 2% for 2011, which would also
help mend its finances. But this is higher than many economists are
forecasting.