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Euro zone growth to return in 2010-ECB Bulletin

Published 08/13/2009, 04:00 AM
Updated 08/13/2009, 04:03 AM

FRANKFURT, Aug 11 (Reuters) - The euro zone economy is expected to return to growth next year after a weak 2009, the European Central Bank said in its monthly bulletin on Thursday.

"Economic activity over the remainder of this year is expected to remain weak," the ECB said. "Looking ahead into next year, after a phase of stabilisation, a gradual recovery with positive quarterly growth rates is expected."

The editorial said risks to the economic outlook were balanced.

The editorial in the bulletin was a close repeat of the statement read by President Jean-Claude Trichet last week, after the ECB kept interest rates at 1.0 percent.

The ECB also said inflation expectations remain firmly anchored in the medium to longer term.

The German economy expanded unexpectedly by 0.3 percent in the second quarter of 2009, data showed on Thursday, bringing an end to the country's deepest recession since World War Two and boosting hopes of recovery in the broader euro zone. [nLD357340]

The rise in German gross domestic product (GDP) came as a shock after four consecutive quarters of contraction and mirrored a surprise 0.3 percent rise in France in the April-June period. [nLD331549] (Reporting by Sakari Suoninen; editing by David Stamp)

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