The euro zone is showing signs of modest growth, but that economic momentum is not exactly what it seems. The growth rate for Q2 stood at 0.3 percent, or an annualized rate of 1.6 percent. This is almost exactly what the experts had predicted with the EU, but it is a number fraught with hidden problems.
Growth is definitely a good thing, but what we are seeing happen in the EU isn’t exactly uniform growth, but, in fact, it is a rather lopsided type of growth with a couple countries doing the bulk of the work. Italy performed especially poorly in the latest batch of data, for example. Germany was really the star of the data release, doubling economists’ predictions on how much growth would occur, settling in at an annualized rate of 3.1 percent growth. Germany is the largest economy in the euro zone, and even with this large amount of firepower, it was barely enough to give the economy as a whole a positive number. France, the euro zone’s second largest economy, remained virtually the same. Read more “Euro Zone Showing Growth”