France, Germany, post surprise gains

FRANKFURT, Germany, Aug. 13 (UPI) -- France and Germany both said their economies grew 0.3 percent in the second quarter, posting surprise gains in the midst of a global contraction.

The 27-nation European Union posted a second quarter slowdown of 1.2 percent, while productivity in the 16-member eurozone shrank 0.4 percent, The New York Times reported Thursday.

The economies of both areas -- the European Union and the eurozone -- shrank by 2.5 percent in the first quarter.

"An export-driven V-shaped recovery in the second half of this year is in the pipeline," said UniCredit Chief Economist Andreas Rees, referring to Germany's ability to take advantage of renewed demand in Asia as an export market.

Although down 22 percent from the same month a year ago, German exports rose 7 percent in June compared to May. The depth of the recovery, however, will be measured next year, economist Thomas Mayer at Deutsche Bank in London said.

"We will really see the difference in recoveries next year, That will be when the U.S. bounces back more quickly than Europe," he said.