Monday, February 16, 2015

Is Europe Back?

The recovery in Europe is continuing to gain steam: Data on Friday showed that the eurozone's economic expansion is growing, with GDP growth for the fourth quarter of 2014 clocking in at 0.3 percent. For 2014 as a whole, the eurozone expanded at 0.9 percent.

Germany, the bulwark of the EU economy, reported growth of 0.7 percent for the fourth quarter and 1.6 percent for the year. None of these figures are great, but they're solid enough to represent progress, and Germany's fourth quarter figure is more than double what economists were expecting.

Europe's economies are benefiting from a lower euro versus the dollar - increasing purchasing power on imported goods - as well as lower oil prices. In Spain, to take one example, retail sales were reported at their highest rate in 11 years, and there are hopes that even Greece is getting its debt problems straightened out. All in all, it looks like the European economy is finally healthy.

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