Stunted recovery ahead for Eurozone, says survey

RECOVERY in the Eurozone will be sluggish this year, according to a Reuters poll of economists.

A resurgent German will not be sufficient to drag the single currency area above quarter-on-quarter growth of 0.3 to 0.4 per cent in the first half of the year, and 0.5 per cent in each of the second two quarters, the survey said.

While the 17 country euro area economy is expected to grow around 1.5 per cent this year and 1.7 per cent in 2012, economists predict almost twice those rates of growth in the US.

A Reuters poll of around 80 economists suggested the US economy will expand by three per cent in 2011, up from 2.7 per cent in a similar poll in December.

The upgrade in forecasts was due to surprisingly positive data, the unexpected payroll tax cut, and evidence of increased houshold spending, said economist Andrew Tilton of Goldman Sachs.