Finally some good news arrived from the European frontlines against global economic crisis. The economies of both countries have shown signs of growth between the times April and June bringing an end to a recession that ruled for a year.
This was achieved thanks to a solid collaboration between the governments and population. Governments issued stimulus packages which stimulated exports and the population on the other hand increased spending habits therefore injecting the market with more money. Although some of these actions were carefully planed, the positive outcome was somewhat of surprise because no one actually expected results to be so quick. But this does not mean that Europe as a whole is safe because there is still a small decline of economic activity in Euro zone. None the less the UK market reaction to the success in Germany and France was quite positive as the FTSE 100 index rose. This only strengthens the belief that all economies are connected and that one positive change can influence the whole system.
Increased export and decreased import had a positive effect on the GDP of Germany and this provided the hope that the worst times are behind. But some analysts believe that there still are problems with the banking system in Europe and that this positive effect is dependant on government spending and eventually will come to a hold. So the question remains how strong this recovery actually is?
France also enjoyed positive changes in export levels and consumer spending. Especially the consumer spending is an encouraging factor as it is steadily holding up. This happened mainly thanks to government schemes and lowered prices. Still the experts warn that this economic recovery is very fragile.
No matter what, these are still very good news for everyone. This only shows that there is an end to this crisis and that international markets will sooner or later regain their health. This on the other hand will rejuvenate international trade and general welfare of people. Let’s hope that this happens as soon as possible.
