Euro Zone Expands In Third Quarter!

Daily Forex Fundamentals | Written by ecPulse.com | Nov 13 09 10:42 GMT |

The end of the economic week is here, as we see the euro zone released its third quarter GDP showing that it expanded therefore gives us evidence that the worst of this global recession is here which also supports the ECB's point of view of wanting to exit the stimulus plans gradually. The euro zone released its third quarter advanced GDP reading showing that the nation expanded to 0.4% from the second quarter contraction of 0.2% while the markets were expecting an expansion of 0.5% while on the year the contraction eased to -4.1% from -4.8% which is worse than the projected contraction of 3.9 percent. The euro zone expanded as a result of exports from Germany and France boosting growth levels therefore making up for the curtailed consumption that is led from the high unemployment rates in the euro zone standing at 9.7% and are only anticipated by the ECB to rise further. The fragile job market is a major threat to the zone's economic recovery because the more jobless consumers there are, the weaker spending there is in the area at a time the zone seeks money inflows to prosper accurately. Despite the weak labor sector, confidence in the zone has been rising which is what the ECB is expecting, as consumers are looking forward to the outlook especially as they improvement taking place. As today we witnessed expansion was also led from the European Central Bank using 60 billion euros to shake off the worst economic recession since post world era, and today it becomes clear that these unorthodox measures have provided growth in the euro zone. We see that one of the reasons behind the expansion in the euro zone was also that Germany, the biggest economy in the euro area today released its third quarter preliminary GDP showing that the expansion widened to 0.7% from the revised advanced expansion of 0.4% from 0.3%. The improvement in this nation was mainly because of the German Chancellor Angela Merkel using 85 billion euros to ease the deterioration in the economy. The money used to ease effects of recession have helped dominate sectors expand which was a reason behind the rising growth levels. Exports were also one of the main reasons behind higher growth levels in Germany, and since the nation is an export oriented economy, we continue to see that Germany is succeeding in stepping out of the recession. Also released today from the leading economies in the euro zone, was France's GDP preliminary reading for the third quarter showing that the expansion remained at 0.3% and not expand like in Germany Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk