{"id":486,"date":"2010-09-06T15:11:00","date_gmt":"2010-09-06T19:11:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=486"},"modified":"2018-08-17T14:21:01","modified_gmt":"2018-08-17T18:21:01","slug":"accelerating-growth-in-the-eu-predicted","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/09\/06\/accelerating-growth-in-the-eu-predicted\/","title":{"rendered":"Accelerating growth in the EU predicted"},"content":{"rendered":"

The President of the European Central Bank, Jean-Claude Trichet, raised his organization’s official forecast for economic growth for the EU for the remainder of 2010 from 1.0% to 1.6%.<\/span><\/p>\n

Analysis:<\/strong> While 0.6% may sound like a meager increase in absolute terms, in percentage terms, that represents a 60% increase in the EU’s growth rate.\u00a0 That is<\/em> a big deal.\u00a0 Remember that it was the EU’s debt debacle in May that got investors all sweaty back in May.\u00a0 Now the same characters who couldn’t manage their member’s finances 4 months ago are suddenly revising growth targets for 2010 upward.<\/span><\/p>\n

What this indicates to me is that one of the world’s most important economies is at the very least: stable.\u00a0 That is, the probability of a double-dip recession in Europe is very low right now.\u00a0 And, in fact, the growth rate for their economy is being revised upward.\u00a0 For the worldwide economy this is important and good.<\/span><\/p>\n

Separately, for the EU to remain a competitive economy in the long-term (7-20+ years)\u00a0it is going to have to generate growth rates much stronger than 1.6% or risk massive capital outflows.\u00a0 Frankly, European countries and their economies just are not attractive places to invest and they have not been for almost 15 years.\u00a0 At some point hopefully the EU will relax some of the massive restrictions on capital formation and business creation statutes so that innovative European ideas turn into businesses that have high growth trajectories and therefore attract investors’ capital.\u00a0 But right now 1.6% sounds sexy.<\/span><\/p>\n

Importance grade:<\/strong> 6.<\/span><\/p>\n

Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The President of the European Central Bank, Jean-Claude Trichet, raised his organization’s official forecast for economic growth for the EU for the remainder of 2010 from 1.0% to 1.6%. Analysis: While 0.6% may sound like a meager increase in absolute terms, in percentage terms, that represents a 60% increase in the EU’s growth rate.\u00a0 That […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-486","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=486"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/486\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}