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Whatever growth is reported for the eurozone Wednesday is unlikely to be evenly spread out across the bloc. The strongest economy, Germany, is expected to post quarterly growth of 0.6 percent, thanks to its high-value exporters. Others continue to languish under the burden of austerity policies. Unemployment remains at stunning highs in some countries -- more than 26 percent in Greece and Spain, with youth unemployment of around 60 percent. Youth unemployment, in addition to hindering economic growth, is thought to contribute to crime and political extremism. "While welcome news, much of the return to growth is likely to be driven from Germany, which is likely to be cold comfort to countries like Spain, Italy and Greece buckling under crippling levels of debt and unemployment," said Michael Hewson, senior market analyst at CMC Markets. Few economists think the indebted countries can start producing German-style levels of growth in the coming years. Burdens from expensive public financing and unemployment will likely continue to weigh on their economies. Yet for many people, even a mild improvement is cause to celebrate, however tentatively, and a suggestion that the darkest days are in the past. As confidence rises that the eurozone will expand, companies will be more likely to open factories and retail space and consumers will be more likely to spend. Companies in the United States, which send 17 percent of their exports to the eurozone, stand to benefit. "This will be good for the U.S. economy," said Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University. "We could see a gradual increase in sales to Europe of everything from Napa Valley wine to U.S. airplanes."
[Associated
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