Thursday, March 21, 2013

Watch out for Europe's rebound

Even Greece Exports Rise in Europe’s 11% Jobless Recovery

Europe’s crisis-torn nations are paving an escape route to recovery.
From Ireland to Spain, the austerity demanded by policy makers in exchange for aid amid three years of debt woes is starting to deliver the competitiveness needed to restore economic growth even as the turmoil risks reigniting in Cyprus.
At the price of a doubling in unemployment and near-10 percent plunge in labor costs, the so-called peripheral euro nations are reviving manufacturing and trade. In Spain, exports reached a record 222.6 billion euros ($287 billion) in 2012. PSA Peugeot Citroen (UG) is hiring there and in Portugal.
“The countries that were highly imbalanced are undoubtedly, progressively, but very effectively, correcting these imbalances,” former European Central Bank President Jean- Claude Trichet said in a March 3 interview. “The current- account deficits of countries that have been under stress diminished over the last years considerably.”
Comment: Expect more news of the same line soon.

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