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There are huge economic differences across eurozone

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There are huge economic differences across eurozone

Financial analysts, commentators and politicians have had much to say in recent months about the continuing debt crisis in the eurozone.

Indeed, ongoing political uncertainty in Greece is casting a shadow over the financial bloc at the moment, along with fears of Spain potentially needing a bailout in the near future.

However, some countries are performing much better than others. For instance, Germany this week reported that its economy expanded by 0.5 per cent between January and March 2012, thanks to a strong performance in its manufacturing sector.

According to foreign exchange specialist HiFX, this shows there are "huge economic differences" across the eurozone.

The group acknowledged that this positive news is "refreshing" given the recent turmoil in the region. However, it suggested that Germany's strong performance means a "two-tier Europe" is starting to emerge. HiFX believes this could lead to further "difficulties" within the eurozone, particularly as the outlook for the euro remains negative.

Andy Scott, premier account manager at the group, commented: "Germany's growth prevented the eurozone from slipping back into recession with flat growth for the zone as a collective.

"France narrowly escaped slipping back into a technical recession with flat growth but the picture was very different for southern euro members which saw an even sharper contraction than expected."

The crisis could potentially impact on the amount of online money transfer activity between the UK and the eurozone, particularly as Britain stands to be affected by economic headwinds from the continent.

Prime minister David Cameron this week warned that since the eurozone is the UK's biggest trading partner, its exposure to the crisis is six times greater than that of the US.

He described the economic conditions in Europe at the moment as "perilous" and insisted the government will do what it can to safeguard the country from the "worst of the storms".

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