Europe's Economy Was Weak in Final Quarter of Last Year
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A small contraction in the German economy helped hold growth in the 12-member euro zone to 0.2 percent in the fourth quarter, according to official figures released Tuesday.
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The economy turned in a much weaker performance in the final quarter of 2006 than initially thought, and new-home sales tumbled in January by the most in 13 years, suggesting more business lethargy ahead.
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Germany s economy, Europe s largest, grew at the slowest pace in more than a year in the third quarter as exports declined and an increase in domestic demand failed to make up the difference.
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Signs of shaky economies in France and Germany have sharpened worries about Europe's less-than-robust recovery &#151; and underscored the struggle to shake up regulation-clogged economies in countries that use the euro.
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US economic growth drops to a weaker-than-expected annual rate of 0.6% in the final quarter of 2007.
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BRUSSELS - The European Central Bank has lowered its growth forecast for the eurozone economy this year to 1.8% from a previously projected 1.9%, and to 1.9% from 2.3% in 2005, sources close to the ECB said.
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Many nations in Europe are now feeling an autumn chill of slackening economies and warnings of further market upheaval.
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European stock markets were mainly weak on Friday, in the wake of a poor German business confidence survey and weak showing by Wall Street overnight.
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New data shows third-quarter slowdown in euro-zone growth
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The U.S. economy grew at a  weaker-than-expected 3.1 percent annual pace in the final  quarter of 2004, its slowest since the beginning of 2003 as the  country's trade performance deteriorated and inflation picked  up, a government report on Friday showed.
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Europe's main stock markets were falling, as some leading companies posted annual earnings to a poor reception from investors.
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Europe's main stock markets have been generally weak, but losses were slight at the end of a week in which leading indices have reached the highest points for six years.
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Net borrowing by European governments will fall to the lowest level in five years in 2007 as better than expected growth and improvements in tax revenues reduce financing needs, according to a report by Standard &amp; Poor's published on Tuesday.
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A report commissioned by the European Union said Thursday member countries are dismally behind in achieving economic reforms pledged four years ago.
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The economy grew at a sluggish 2.2 percent pace in the final quarter of last year, much slower than initially reported, in a kind of unusually large downward revision that has happened only seven times in the last 30 years.
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FDI fell one-third in Central and Eastern European countries from 2002 to 2003. The &quot;skilled but relatively cheap workforce&quot; in the eight new EU member countries did not pull in investment as strongly as expected
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Europe's economy faces a rougher time in 2008 than last year in the face of financial market stress and surging oil and food prices, the European Union's Slovenian presidency warned Tuesday.