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Germany and France Out of the Recession





Germany and France are basking in the first rays of economic recovery.

The gross domestic product of both countries grew by 0.3 percent in the second quarter — defying earlier expectations which had forecast further contractions.

The news was greeted with cautious relief by German Senior Economist, Christian Dreger. He's hoping the data signals an end to the country's deepest recession since World War Two.

[Christian Dreger, Senior Economist]:
"The recession is apparently over. We are now seeing a phase of stabilization in production and it's even possible that the third quarter will rise more than the second quarter. Overall, I think we can look at this as a modest recovery ahead of us.

In France, analyst Benoit de Broissia said the second quarter rise was powered by solid consumer spending, greased by government stimulus measures.

[Benoit De Broissia, Analyst, KBL Richelieu]:
''This good news can be attributed partly to the domestic consumption that held up better than expected with some increase compared to the first quarter. We know it's also due to the stimulus measures.''




Countries across the euro zone are hoping continued German and French growth will help to pull their economies out of recession.

GDP in the 16-nation euro zone slid further into the red in the second quarter — though not as much as had been feared, raising expectations that the worst of the financial crisis is over.

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