European economy out of recession


The euro-area economy came out from recession in the third quarter as consumers’ unwillingness to increase spending was compensated by growth in exports from France and Germany. Gross Domestic Product rose 0.4 percent in the economy of the 16 countries that use the euro. It had fallen by 0.2 percent in the previous quarter. The GDP growth for this quarter was lesser than the 0.5 percent growth that was predicted by economists.

The European economy is becoming stronger as governments have increased the stimulus measures and the European Central Bank has put in billions of euros into the market to boost lending. The confidence in the economic perspective is currently at the highest level for 13 months. But, the end of stimulus measures, ever-increasing unemployment and a rising euro may lead to a weakened recovery.

The economy in the euro-zone has officially emerged from the recession and this is a sign of relief for the consumers and the companies both. But, it is not a cause for celebration yet. The euro was almost stable against the dollar in London, trading at $1.4784 after rising to a high of $1.4902 earlier in the day.