Greece back as a headache for improving eurozone economy
Yahoo News - May 11, 2015
It may only account for 2 percent of the eurozone economy but Greece has a habit of punching above its weight when it comes to bruising the currency union.
And there are fears it could be once again posing a threat to an otherwise burgeoning recovery.
Official figures on Wednesday are expected to show that the 19-country eurozone grew by 0.4 percent in the first quarter of 2015 from the previous three-month period. That's up from the 0.3 percent recorded in last quarter of 2014 and would be the eurozone's highest growth rate since the second quarter of 2013, when it emerged from its longest-ever recession.
In the first quarter, Germany, Europe's biggest economy, is expected to have led the way, its export-heavy economy prospering from the fall in the value of the euro — Europe's single currency has fallen to near a decade-low against the dollar in the wake of the European Central Bank's decision to launch a 1.1 trillion-euro ($1.2 trillion) monetary stimulus. Low oil prices, less stringent budgetary policies around Europe are also helping to shore up the recovery.
Other bright lights include Spain, one of the countries at the forefront of the region's debt crisis over the past few years that has gained plaudits from European policymakers for reforming its economy, particularly the labor market. Economists think those efforts are now bearing fruit.
