Friday, May 13, 2011

Greece Economy Grows Faster Than UK - 13th May 2011

Portugal has slipped back into recession as Greece's economy overtakes the UK, according to the latest GDP figures.

In the first three months of 2011, Portugal saw a 0.7% reduction in GDP, following a 0.6% drop in the last quarter of 2010.

It comes a week after Portugal reached a deal with the European Union and the IMF over a 78bn euro bailout.

However, Greece saw a GDP growth of 0.8% to emerge from recession - even more than the UK, which saw a 0.5% rise over the period.

Greece is widely expected to need more financial help, beyond the £95bn bailout that saved it from bankruptcy last year.

As a whole, the Eurozone saw GDP rise by 0.8%.

Germany was the star performer, with growth of 1.5%.

Austria, France and Slovakia announced growth of 1% in the same period.

The Netherlands saw growth of 0.9%, while Spain lagged behind, with just a 0.3% rise reported.

Italy reported just a 0.1% rise in growth in the period.

Last month, the Italian government cut its growth forecast for the whole of 2011 from 1.3% to 1.1%.

The rise in Spain's growth rate to 0.3% from 0.2% in the previous quarter is more encouraging as the country tries to avoid a third consecutive year of contracting GDP.

“These figures expose how, since George Osborne’s spending review and VAT rise, Britain’s economy has gone from the economic fast lane to the slow lane. Read More