France and Germany in the Clear?

Both the French and German economies has seen growth in the past few months which signals the end of the year long recession for what are two of Europe’s strongest economies.

Thanks to a range of factors including government aid in the form of stimulus packages, as well as increased exports and consumer spending, the two countries have managed to finally beat off the economic crisis which has been a worldwide disaster.

Meanwhile, the rest of the Eurozone is still witnessing economic contractions, and the European region in general is still in recession, entering its fifth quarter.  However, there is a marked improvement over the previous financial quarters.

Few people thought that the economies Germany and France would recover so soon, but the fact that they have, serves to reassure the rest of the Eurozone that a recovery is just around the corner. With parts of Europe already out of the red, this should have a knock-on effect for the rest of the European nations.

In the United Kingdom, stock markets were pleased to receive the news, and this resulted in trading being up around 1%.  Thanks in no small part to France and Germany’s recovery, the FTSE 100 index also rose, which shows just how closely linked Europe’s economies are.

However, the full effects remain unclear, because of the fact that the British economy is somewhat isolated from the rest of Europe.

The United Kingdom also suffered a great deal more because of the financial crisis, and many industries are yet to recover.  Job losses in the UK may rise until 2011, and until this time, many people do not for see a recovery.

Generally speaking, European GDP is growing, and even though some countries are still in recession, data based on this last financial quarter has provided a great deal of optimism worldwide.

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