Eurozone ‘to withstand world dip’

The third quarter of this year recorded slower but still robust growth in the euro area, confirming that the recovery is broad-based and sustainable, finds the Quarterly Report on the Euro Area published 18 December 2006. Domestic demand is the mainstay of expansion and the labour market continues to improve with unemployment at its lowest level since 2001. The euro area is therefore well placed to face a somewhat less favourable international environment deriving from the US slowdown. The Focus Section of the report looks at current account imbalances within the euro area. The fact that some countries run high deficits reveals to an increased financial integration within the zone, but also reflects diverging trends in competitiveness sometimes compounded by national economic policies.

European Commision: Press Release: IP/06/1822: Euro area on a broad-based and self-sustaining recovery http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1822&format=HTML&aged=0&language=EN&guiLanguage=en

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