Germany and the UK Lead Economic Recovery

Germany confirmed on Friday it had enjoyed its fastest rate of economic expansion in more than a year in the second quarter, and Britain revised up its growth to the same rate.

Although recession still haunts many of Europe’s major economies, like Italy, Spain and the Netherlands, analysts said the German and British data showed that at least two of the region’s major economic engines are moving into a higher gear.

Strong domestic demand drove a 0.7 percent quarterly increase in German gross domestic product in the second quarter, matching its growth rate in the first quarter of 2012.

Britain’s economy expanded at the same rate as Germany’s, equaling the growth it recorded in the third quarter of last year, fuelled by a broad-based pick-up in activity.

The signs of robust growth have also led to more upbeat comments from the region’s central bankers, who have hitherto hinted at interest rates remaining low for some time to come.

via Reuters

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