Eurozone 'emerging from recession'

A new report from the European Commission has declared that the eurozone economy is at a ’turning point’ and beginning to emerge from the recession.

The commission predicted overall growth of 0.2 per cent for the third quarter of 2009, although it has not revised its earlier forecast that the economy will contract by four per cent over the course of the year.

According to the report, the German economy will enjoy third-quarter growth of 0.7 per cent, while France will see expansion of 0.4 per cent during the same period and the UK is forecast to grow by 0.2 per cent.

’The economic situation has improved markedly since the second quarter, pointing to a better growth outlook for the second half of the year,’ the report concluded.

Alan Clarke, UK economist at BNP Paribas, recently said that the British economy will be ’driving with our foot lightly on the brake rather than stamping hard on the accelerator’ as it continues to recover from the recession.

The British Chambers of Commerce recently forecast GDP decline of 4.3 per cent for the UK in 2009.
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