European Economy Speeding Up

The economy in the eurozone is finally doing well. After extensive quantitative easing by the European Central Bank, the economies in the area have grown faster than the United States economy, CNN Money reports. At the same time, the unemployment has reached a nine-year low.

The eurozone economies (an area where euro was adopted) grew 2.4 percent in 2017, a bit faster than the American economy. According to Stephen Brown, an economist at Capital Economics, the business sentiment in Europe points to higher growth in the upcoming months. In fact, business confidence in the region is at 17-year high.

In France, the economic growth looks promising. Quite possibly, the growth of the French economy will surpass that of Germany. French President Macron is looking to loosen strict labor laws, reduce corporate taxes, and lower the budget deficit by reducing the public sector. Whether that really happens is yet to be seen.

There is some political uncertainty in Europe, though. German Chancellor Angela Merkel is having troubles forming a coalition government, while Brexit brings more uncertainty. At the same time, Spain has to deal with issues related to declaration of independence by Catalonia, while Greece continues to struggle under debt burden.

Overall, the unemployment figures in the region don’t look bad, especially 3.6 percent unemployment rate in Germany. But, when it comes to Spain, the rate stands at nearly 17 percent. So, not every country in the eurozone is benefiting from good economic times in Europe.

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