Britain is Eclipsed By German Recovery
Feb. 4--Germany is regaining its status as the motor of the European economy, an influential survey of business leaders suggested yesterday. Activity at service companies such as banks, insurers and airlines powered ahead at its briskest pace in more than five years in January, eclipsing the rate of expansion in Britain. The UK outlook is dimming as debt-laden consumers rein in spending. Personal insolvencies rocketed to the highest level on record in 2005, Department of Trade and Industry numbers showed Friday.
Debt in the UK amounts to a staggering 140pc of gross domestic product, far outweighing European economies such as Germany and France, according to figures from the Organisation for Economic Co-operation & Development (OECD). The European Central Bank hinted this week that growth in the eurozone may be strong enough to justify an interest-rate hike.
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