Germany and France rebounded unexpectedly from recession in the second quarter as stimulus plans around the world boosted demand for exports.
Europe's largest economy grew by 0.3pc from the first quarter, when it shrank by 3.5pc. Economists had been predicting a 0.2pc decline in Germany. The improvement brings an end to Germany's worst recession since the Second World War.
The German statistics office said the economy was helped by higher government and personal spending and a pick up in construction during the quarter.
France also reported growth in the second quarter, with a 0.3pc rise in gross domestic product (GDP). Forecast had been for a contraction of 0.2pc.
The British economy shrank by 0.8pc in the second quarter, more than twice as much as economists had forecast, because of the continuing hit to financial services and the property markets which buoyed up growth until the financial crisis hit.
Despite the recent improvement, economists and business leaders expect recovery to be sluggish.
Marius Kloppers, the chief executive of mining giant BHP Billiton, whose earnings are dependant on industrial growth, said yesterday he expects the world economy to take longer to get back to full speed than after previous downturns.
Eurozone GDP figures out later today are expected to show the region's economy shrank 0.5pc from the first quarter. Although, the rebound in euro region's two biggest economies mean the European Central Bank is unlikely to increase its stimulus measures.
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