European Economic Growth Slows
Sep. 13, 2001
BRUSSELS, Belgium (AP) _ Confirming the drag of the global economic slowdown, the European Union's statistical agency reported Thursday that gross domestic product in the 12 euro-using countries rose by a slim 0.1 percent in the April-June quarter.
The rise followed an increase of 0.5 percent in the first three months of 2001 and a 0.6 percent rise in the fourth quarter of 2000, Eurostat said.
Household consumption was largely responsible for sustaining GDP growth, offsetting drops in investments and exports. Private consumption rose 0.6 percent in the second quarter, but even that was less than the 0.8 percent rise in the first quarter.
Investments dropped 0.8 percent, compared to a 0.1 percent rise last quarter, and exports declined 1.2 percent from a 0.3 percent rise. Imports fell 0.6 percent, swinging from a 1.1 percent decline in the first quarter.
GDP in the full EU _ including non-euro countries Britain, Sweden and Denmark _ also rose by 0.1 percent in the second quarter, compared to 0.5 percent in the first quarter.
The U.S. economy grew by just 0.2 percent in the April-June quarter, while Japan saw its GDP fall 0.8 percent in the second quarter.
Belgian Finance Minister Didier Reynders, whose country holds the EU presidency, said Wednesday that the terrorist attacks in the United States will have only a ``limited impact'' on the EU economy, though he doubted the EU can stick to its forecast of a 2 percent economic growth rate this year.