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The euro-area economy may expand 0.2% in the third
quarter after governments spent billions
Dublin - Europe's economy probably returned to
growth in the current quarter after governments
spent billions of euros to pull the region out of
the worst recession in more than six decades, the
European Union said.
The euro-area economy may expand 0/2% in the third
quarter and 0.1% in the fourth after shrinking
0.1% in the three months through June, the
European Commission, the EU executive in Brussels,
said yesterday in updated economic forecasts. In
2009, the economy may shrink 4%, the commission
said, leaving its May projection unchanged.
European companies from Germany's Thyssen Krupp AG
to France's L'Oreal SA have reported results that
beat analysts' estimates, suggesting government
efforts to encourage spending for feeding into the
broader economy.
European Central Bank president Jean-Claude
Trichet on September 3 cited "increasing signs" of
stabilisation. Investors grew more optimistic this
month and economic confidence is at a 10-month
high.
"The solution has considerably improved over the
past months," said Juergen Michels, chief
euro-region economist at Citigroup in London. "The
second half will be more positive, but we can't
expect a boom. The recovery will continue through
2010."
~~ Bloomberg
reported in The Malaysian Reserve, 15 September
2009
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