Newspaper article The Evening Standard (London, England)

Eurozone's Ailing Recovery Ups Chances of a Further Rate Cut

Newspaper article The Evening Standard (London, England)

Eurozone's Ailing Recovery Ups Chances of a Further Rate Cut

Article excerpt

Byline: Russell Lynch

THE eurozone's recovery from recession slowed to a virtual standstill today, triggering expectations that European Central Bank president Mario Draghi could follow last week's shock rate cut with further action.

The eurozone emerged from its longest-ever recession in the second quarter of this year but the latest figures for July to September showed the region unable to maintain the momentum as growth slowed to 0.1%.

Although the figure was in line with expectations, the anaemic growth still leaves the eurozone 3% below its pre-crisis peak.

Worryingly Germany and France, the twin engines of the eurozone, faltered as the pace of growth fell by more than half in Germany to 0.3% and France slipped back into contraction.

Among the eurozone's strugglers Italy shrank 0.1%, Spain managed 0.1% growth and Portugal advanced 0.2% over the quarter. Greece also shrank 3% year-on-year.

The news comes a week after Draghi stunned markets by cutting interest rates to a record low 0. …

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