Update 12:25. The French and German economies grew in the second quarter of 2009, raising hopes that the recession in Europe is over. Unexpectedly strong growth of 0.3 percent in the second quarter in Europe’s two largest economies appear to be due to strong demand for European exports, low interest rates and stimulus spending by governments. The good news is expected to give a boost to German Chancellor Angela Merkel’s chances for re-election in polls 27 September.

GDP growth in the Euro area was down 0.1 percent in the quarter, however, while econmic growth in the EU 27, which comprises the economies of all EU members, was down a total of 0.3% in the second quarter of 2009, according to Eurostat, the European Statistics Agency.

Bloomberg, Eurostat, Le Monde

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