France And Germany In Sluggish Q2 Growth

European powerhouses France and Germany both saw sluggish growth over the second quarter below analyst expectations, according to figures released today.

The economies, responsible for much of the economic strength of the European Union, performed poorly over the second quarter as compare to analyst predictions, sparking fears that the EU may fail to meet its current growth targets.

Both the French and German economies saw growth of a paltry 0.3% over the second quarter of this year, to June, compared to similar growth across the Euro zone of just 0.3%.

Growth across the Union last quarter was recorded at 0.7%, reflecting a sharp decline in growth in the region.

Experts have predicted the German slowdown to be but a temporary state of affairs, with predictions suggesting the current construction sector problems could be responsible for the hitch in growth, which should no have a lasting effect on next quarter’s results.

Meanwhile, the French economy is thought to be suffering more significant underlying economic problems, after growth had been forecast at a half percent for the second quarter.

With investment and corporate expansion flat throughout the period in France, analysts are predicting that it may take some more time for the French economy to turnaround - news which will undoubtedly have an impact on the wider European set up.

The Euro-zone has been hit badly over recent weeks, with news coming from Italy of similar sluggish growth to today’s reports.
While some have described analyst predictions as ambitious, it is widely held to be indicative of poor economic performance throughout the region.

The threat of bank liquidity issues from the US and poor business investment are considered to be at the heart of the problem. Stock markets across Europe have continued last week’s downward trend, falling in line with today’s poor quarterly figures.

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