A year ago, the euro zone’s most important challenge was anemic economic growth. But 2006 turned out to be a good year for growth in Europe, as surprising strength in exports sparked unexpected increases in domestic demand. Germany, the euro zone’s biggest economy, had a particularly dramatic turnaround, with annual GDP up by 2.7% in 2006, the highest rate since 2000.
A year ago, the euro zone’s most important challenge was anemic economic growth. But 2006 turned out to be a good year for growth in Europe, as surprising strength in exports sparked unexpected increases in domestic demand. Germany, the euro zone’s biggest economy, had a particularly dramatic turnaround, with annual GDP up by 2.7% in 2006, the highest rate since 2000.