"The euro-zone economy expanded at a rate of more than 3% in the first quarter, outpacing the U.S. and adding to the distance between the bloc's strengthening northern tier and its debt-ridden periphery.
The figure underscores several dominant themes in Europe: A wide gap persists between wealthy, globally competitive countries in the north, and moribund economies such as Greece and Portugal that are unable to find new sources of private growth to replace a shrinking public sector.
The so-called core of Germany and its neighbors is increasingly decoupling from the debt crisis in Southern Europe and Ireland. That is a dilemma for the European Central Bank, which likely will be forced to combat signs of overheating in Germany and elsewhere with higher interest rates, even at the risk of doing further damage to the periphery.
Spain grew in the quarter, albeit slowly, raising hopes that its still-weak economy will withstand the contagion from Greece and keep the debt crisis from infecting the rest of the region. The euro zone as a whole "is definitely on better footing," said Greg Fuzesi, an economist at J.P. Morgan Chase in London.
Gross domestic product across the 17-member euro bloc surged 3.3% at an annualized rate in the first quarter from the previous quarter, according to figures from European Union statistics agency Eurostat. Economists had expected growth closer to 2.5%.
It is a sharp pickup from the fourth quarter of 2010, when the euro bloc expanded just 1.1%. Harsh weather depressed activity at the end of last year, economists said, and a more favorable climate helped boost output in the first quarter. Mr. Fuzesi forecasts the euro zone will settle into a roughly 2% growth rate this quarter and next.
Growth was led by Europe's biggest economy, Germany, which advanced at a 6.1% annual rate. Germany has benefited since last year from an upswing in investment and resurgent global demand, particularly from emerging markets, such as China, where German-built luxury cars and specialty machine tools have been selling at record levels.
Nonetheless, Friday's figures suggest Germany is becoming less dependent on other nations for its growth. Though it gave no detailed breakdown, Germany's statistics office said investment and consumer spending posted strong gains, while foreign trade made less of a contribution."
(http://europe.wsj.com/)
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"The euro-zone economy expanded at a rate of more than 3% in the first quarter, outpacing the U.S. and adding to the distance between the bloc's strengthening northern tier and its debt-ridden periphery.
The figure underscores several dominant themes in Europe: A wide gap persists between wealthy, globally competitive countries in the north, and moribund economies such as Greece and Portugal that are unable to find new sources of private growth to replace a shrinking public sector.
The so-called core of Germany and its neighbors is increasingly decoupling from the debt crisis in Southern Europe and Ireland. That is a dilemma for the European Central Bank, which likely will be forced to combat signs of overheating in Germany and elsewhere with higher interest rates, even at the risk of doing further damage to the periphery.
Spain grew in the quarter, albeit slowly, raising hopes that its still-weak economy will withstand the contagion from Greece and keep the debt crisis from infecting the rest of the region. The euro zone as a whole "is definitely on better footing," said Greg Fuzesi, an economist at J.P. Morgan Chase in London.
Gross domestic product across the 17-member euro bloc surged 3.3% at an annualized rate in the first quarter from the previous quarter, according to figures from European Union statistics agency Eurostat. Economists had expected growth closer to 2.5%.
It is a sharp pickup from the fourth quarter of 2010, when the euro bloc expanded just 1.1%. Harsh weather depressed activity at the end of last year, economists said, and a more favorable climate helped boost output in the first quarter. Mr. Fuzesi forecasts the euro zone will settle into a roughly 2% growth rate this quarter and next.
Growth was led by Europe's biggest economy, Germany, which advanced at a 6.1% annual rate. Germany has benefited since last year from an upswing in investment and resurgent global demand, particularly from emerging markets, such as China, where German-built luxury cars and specialty machine tools have been selling at record levels.
Nonetheless, Friday's figures suggest Germany is becoming less dependent on other nations for its growth. Though it gave no detailed breakdown, Germany's statistics office said investment and consumer spending posted strong gains, while foreign trade made less of a contribution."
(http://europe.wsj.com/)