Germany speeds ahead

After a terrible 2009 in which real GDP dropped by 4.9%, the German economy has posted the biggest increase in her quarterly GDP since West was unified with the East. German gross domestic product expanded by 2.2 per cent rate in the second quarter compared with the previous three months. German industry is riding on the back of a rebound in demand in the global economy (her manufacturing businesses are closely tied to swings in the world economic cycle) allied to the competitive boost of the recent depreciation of the euro against the US dollar.

Steve Evans reports on the surging German economy

The French economy also showed signs of renewed growth. But elsewhere the so-called “peripheral” economies – including Greece, Ireland, Spain and Portugal (the PIGS) continue to see weak growth and the continued fall-out from their sovereign debt problems. The Euro Zone remains a two speed economy but European Union growth (which includes the UK) is now out-performing the pace of expansion in the United States - the key question is whether it can last.

Suggestions for further reading

What shape are the world’s economies in? (BBC)

The Economist - Turbocharged Germany