Economic growth in the countries that use the euro jumped last year and reached its highest annual rate in six years. The EU statistics office Eurostat now estimates GDP expanded by 2.7%. That is nearly double the 1.4% seen in 2005. The European Commission is due to update its GDP figures on Friday and has already said it will probably raise its current forecast of 2.1% growth in 2007. Growth rebounded in the final three months of 2006 and reached 0.9%, the same as during the second quarter and a major improvement on the 0.5% of the third quarter. Germany enjoyed 2.7% growth last year compared with 0.9% in 2005. France rose from 1.2% to 2%. Italy - where the economy had stagnated in 2005 - also managed a 2% expansion. The region's growth does not appear to have been damaged by the European Central Bank's interest rate increases and the latest figures make it more likely that there will be another rise in March. The European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said this week the economy is coping well with the euro's strengthening against the dollar and the yen. http://www.euronews.net/index.php?page=eco&article=406285&lng=1 ________________ It's best in six years but I think 2.7% is still not much compared to the growth in America or Russia..
Long-term trends don't look good. The only country with positive growth seems to be Ireland, which has a really friendly corporate tax system. Reduce the government size, please.