Improvements to European economy could spell beginning of the end of the financial crisis
Independent economic forecasters have positive evidence that could indicate the beginning of the end of the European financial crisis.
An improvement can be seen by the slight increase in European business in the month of July – the first rise in a year and a half. European bond markets have stabilised as a result of
the president of the European Central Bank’s efforts to keep the Euro cohesive and trade and budget deficits in key countries such as Ireland, Portugal and Greece have decreased.
However, the Governor of the Bank of England still warned that collapse in Europe could cause fundamental damage if not managed properly.
While there have been small yet significant developments, areas such as unemployment remain unsustainably high – the rate in Europe almost double that of the US and UK at 12.1% – a reminder that the recession is by no means forgotten.
A dip in Asian emerging markets has clearly been a contributing factor to European economic recovery, with more investors turning back to the West for business opportunities. Advancements with US trading, Europe’s biggest trading partner, are also undoubtedly positive and provide a longer term business confidence for the European economy.
Renewed confidence by this upturn in figures could give Europe the boost it needs to drive demand and forge new business relationships and investments which will ultimately lay the foundations on the road to full recovery.