 
 
May / June 2001 Economy to recover late this year: G10
The US economy is likely to recover towards the end of this year, Bank of England governor Sir Edward George said recently in Switzerland. The 12-nation euro zone is meanwhile set for growth of 2.5 percent this year although it is suffering inflationary pressures, he said on behalf of central bank governors from the Group of 10 industrialised countries. Growth would probably return towards the end of the year in the United States, although there could still be some factors acting as a brake on the world's biggest economy, George said. There were encouraging signs in US data including confidence in the US economy and 2.0 percent growth in US gross domestic product (GDP) in the first quarter of this year, the Bank of England chief said. GDP growth of Germany
The German government said recently that it expects gross domestic product (GDP) to grow by about 2.0 percent this year, instead of by 2.75 percent expected earlier. But growth in the biggest economy in the euro zone would pick up again next year and German GDP would expand by about 2.25 percent in 2002, the German finance ministry said in a statement. In 2000, the German economy grew by 3.0 per cent. "Following a temporary weakening in the second half of last year, economic momentum is expected to strenghthen again," the statement said. The economy was expected to achieve average annual growth of 2.25 percent up until 2005, the ministry said. The government has come under heavy fire in recent months for refusing to revise its growth forecasts, despite mounting evidence that the German economy is being hit harder by the US slowdown than originally anticipated. Many economic experts and think-tanks have recently cut their expectations for German growth this year to 2.0-2.2 percent. Australian Economy revived
The embattled Australian economy received a boost recently with data releases showing a small rebound in the housing industry and a climb in export earnings. The report came as a welcome relief to Prime Minister John Howard's unpopular government, which has been hit by a string of bad economic reports just months away from federal elections. The Australian Bureau of Statistics reported a 6.7 percent rise in building approvals to 9546 for March , partially reversing a 10.8 percent plunge in February. 
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