Strong Growth Forecast For Eurozone Gdp In Q3
News Posted On: 12 November 2009
Today saw some bright news for the European economy, as its largest economies revealed their figures for industrial production in advance of quarterly GDP figures to be revealed tomorrow.
France, Germany and Italy, the Eurozone's three biggest economies have all recorded major growth in industrial output in the third quarter, despite the fact that Italian output fell 5% in September, cancelling out the impressive gain made in August.
While France and Germany emerged from recession a quarter before Italy, in Q2, Italy's emergence from recession in Q3 was much stronger with a growth of 1% compared to 0.3%.
However, economists are now forecasting that Italy's GDP will be flat in Q4, which it will be if the September output figures are anything to go by. Italy is a hard one to call though, because the economy is driven by a large number of small companies, whereas other leading economies are primarily driven by large corporations.
Economists now expect at least a 0.5% growth in the Eurozone combined Gross Domestic Product to be revealed tomorrow, with some saying that it could even be higher than the growth in the US at 0.9%.
Any growth will be good news for UK companies. While the UK has yet to emerge from recession, this is keeping he pound weak against its rivals, allowing UK companies to gain footholds in foreign markets that may not have been possible otherwise. It is possible that these footholds made now could bolster future growth in the UK manufacturing and export sectors.
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Written by Liam Bailey
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