Jim Armitage: Why there should be an upbeat outlook for Europe's economy
Not only are today’s eurozone economic figures disappointing, they’re hopelessly out of date.
Germany, Holland and Portugal fared worse than expected in the second quarter of the year to June, but a lot has happened since then, especially in the past few days.
First, the bad news: China has made it absolutely clear that its economy is slowing even faster than most in the West had feared.
Furthermore, the Greek crisis — with all its knock-on effect on confidence across the continent — peaked after this data was collected.
The fallout will only be felt in the current quarter’s numbers.
But there have been positives too: Greece may be finally sorting itself out, particularly if we get a dream scenario of a popular Alexis Tsipras leading a new, pro-bailout deal government.
More cordial relations with Europe would follow, making it easier for Germany to approve the inevitable debt relief.
European Central Bank boss Mario Draghi’s €1.1 trillion (£784.97 billion) money-printing and virtually zero rates are working through the system.
The US economy is racing away so rapidly that a September interest-rate rise looks likely, and low oil and commodities prices are making nearly all businesses’ lives easier.
Plenty of reasons to be cheerful.
