Eurozone recovery grinds to halt

FRANKFURT, Germany – Well, that didn’t last long. After four quarters of meager growth, the fragile economic recovery in the 18-country eurozone creaked to a halt in the second quarter. Growth was zero. After only 0.2 percent in the first quarter. Now who will get out and push? The European Central Bank, with a further monetary stimulus? Or governments in France and Italy, which have dragged their heels in making their economies more business-friendly? Either or both could help. Especially if the Ukraine crisis mushrooms with a Russian invasion that would scare off business investment even more – and extend one bad quarter into an outright recession. Few economists think the eurozone will slip back into its third recession in six years. Most expect only a slow recovery as Europe continues to work down its debts and that’s not ideal for a global economy that’s a long way short of firing on all cylinders. In short, the eurozone remains a potential drag on the rest of the world. “I don’t think today’s numbers make that picture any worse,” said Tom Rogers, senior economic adviser to the EY eurozone forecast.

Eurozone recovery grinds to halt