More divergence in Europe A large part of Europe continued to recover last year despite widely reported difficulties encountered by peripheral European countries, [Slide 4]. The divergence in economic performance between the countries became increasingly apparent. While Germany and its neighbouring countries experienced robust growth, the economies suffering from the debt crisis contracted or grew only very slowly.
However, the growth decelerated towards year-end from the exceptionally high rates observed earlier in the year, as the temporary impetus from inventory replenishment, which had fuelled growth in the early part of 2010, began to recede. Simultaneously, the strong export growth also began to lose momentum.