Investment - Articles - The quiet recovery in Europe

 The political challenge from Silvio Berlusconi in Italy was defeated, while investors took in their stride the tougher than expected requirements from the forthcoming banking benchmarking and stress tests exercises. Despite all of the outstanding structural issues, the European recovery appears to be on track. In the latest economic quickview Azad Zangana, European Economist at Schroders, explains why the European recovery appears to be on track.

 Improving Activity (page 1 of the report)

 Leading indicators suggest that not only has core Europe continued to expand activity at a steady pace, but that peripheral Europe may be on the verge of resuming growth.

 A Greek comeback? (page 2 of the report)

 Greece is making great progress in fixing its public balance sheet, and if growth does resume in the near future, then there will be a tailwind to boot.

 Remaining periphery also improving (page 4 of the report)

 Overall, Europe is recovering in a quiet and timid fashion. Considerable challenges remain including the uncertainty from the ECB’s banking reforms. Nevertheless, a resumption of growth will aid the healing process for the region as a whole.