Europe

The pace of economic growth in the Eurozone returned to normal. Gross domestic product for 2010 climbed by 1.8%. The speed of the economic recovery varied widely in the individual member states, however. Export-oriented countries with relatively healthy public finances, such as Germany, the Netherlands, Finland and Austria, profited from the upswing in world demand. Their growth rate was above-average by Eurozone standards. The situation in Greece, Ireland, Portugal and Spain was quite different. In response to their borrowing difficulties these countries were obliged to adopt stringent austerity measures, which proved to be a drag on business activity. France, Italy and Belgium, on the other hand, recorded economic growth in line with the Eurozone average. While the employment situation in Germany, Finland and the Netherlands continued to improve, jobless figures elsewhere – including Spain and Ireland – rose sharply.