Finance ministers of 16 countries of the euro area’s economic growth expected area of the single European currency in 2010 to be “fragile” but positive, about 1%. In 2009, the eurozone has experienced the worst recession in its history, as the gross domestic product (GDP) fell by 4 per cent. In the fourth quarter of last year growth was only 0.1 percent, reports agency Reuters. Expectations of ministers who had the extraordinary meeting is to inflation in the eurozone rose by an average of around 1.3 percent this year. What will hamper the development is the labor market situation, unemployment will continue to rise until 2011, warn experts. Many companies that have low utilization, you will be able to maintain jobs. One of the most important reasons for the refund will be renewed confidence in financial markets, which currently is still quite fragile. Most major central banks kept interest rates at around zero, and this increased demand and purchase of assets with higher interest. Eurozone inflation rose to an average of around 1.3 percent in 2010.
(more…)

The French central bank predicted that France’s economic growth will be 0.5 percent in the first quarter of 2010. According to estimates by the National Statistics Institute (Insee) reconstruction of the country’s economy will strengthen in early 2010 but will be difficult and the increase in gross domestic product will be in the range of 0.3 – 0,4 per cent per quarter to mid-year, BTA reported, citing information to Agency France-Press. Recently the government to revise its forecast for growth this year for economic growth of 0,75 to 1.4%. National Institute of Statistics will publish on Friday its initial data on the economic growth of France in the last quarter of 2009.
(more…)

The Data for the economic growth in South Korea turned out to be much lower than prior expectations of analysts. They showed a significant easing of growth to just 0.2 percent annually during the last quarter of last year. This is much less than the economy achieved an increase in the amount of 3,2 per cent in the previous three months and below expectations of analysts who had predicted an increase of 0,5 percent on an annual basis. Despite the slowdown of the country’s central bank today confirmed its forecast for economic growth from 4,6 per cent this year. According to market observers, however, data published today will lead to pressure on institutions not to raise interest rates in the country. Expectations were the main interest, which is a historic bed by 2 per cent to be increased this year, but this may not happen. During the period, exports of goods has shrunk by 1,8 per cent on the previous quarter, when growth was made of 5,2 per cent. Corporate investments even slow his pace to 4.7 percent after the third quarter grew by 10.4 per cent. Household consumption has fallen by 0,1 percent, which is an end to the increase of 1,5 per cent measured in the third quarter. Decrease of 2,9 percent was observed in government spending, while production has decreased with 1,3 percent.
(more…)

After exit from the strongest global recession in decades, analysts expect Citibank persistent, albeit uneven global recovery. Almost all major economies from recession came in second and third quarter and the recovery will be strongest in Asia, excluding Japan, and slowest in Europe, notably Japan, said in a report the bank to the global economic outlook. Citibank forecasts a steady recovery in the U.S. in 2010-11, but warned that fiscal state of the medium-term management may face serious challenges. The strengthening of economic growth many emerging markets, especially in Asia and Latin America is likely to raise its main interest rates. Due to low inflation and some continuing concerns about the stability of the economic recovery of Citibank believe that increasing the basic interest rate in the United States will become a fact in the last quarter of 2010 and not bank as previously thought – in the second quarter of that year. Citibank and revise their expectations about the time when it will happen eventually raise its main interest rate in the euro area. The current estimate is that to happen in the first quarter of 2011 instead of the last of 2010 In the UK base rate will probably be increased in the second or third quarter of 2010, while Japan is expected to remain unchanged throughout 2010.
(more…)