“All the Eurozone Is Capable of Is ‘Stealing’ Growth from Others”: French Megabank

Wednesday, March 25, 2015
By Paul Martin

by Wolf Richter
WolfStreet.com
March 24, 2015

The Eurozone’s recovery is now blazing forward into practically uncharted territory. Just today we learned that Eurozone business activity in March, as measured by the Composite PMI, which includes manufacturing and services, showed moderate growth that hit a 46-month high. It was fueled by new orders. Even the French PMI showed signs of expansion!

The report clarified the timing, though: “the ECB’s quantitative easing has been started at a time when the Eurozone’s economic upturn is already starting to gain traction.”

There were other signs of traction. The Eurozone trade surplus with the rest of the world has been setting new records, powered by strong exports, particularly from Germany. This trend kicked off before the euro started tanking a year ago.

So on Monday, ECB President Mario Draghi took the opportunity to slap himself and his colleagues on the back for their heroic and bold action, as these things are called, and offered an upbeat assessment of the Eurozone economy. He proclaimed “that growth is gaining momentum.” And he totally nailed it with three out of the four reasons he gave for that growth:

This is due to in particular the fall in oil prices, the gradual firming of external demand, easy financing conditions driven by our accommodative monetary policy, and the depreciation of the euro.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter