The Conference Board Economics Watch® - European View

  • Authors:
    Brian Schaitkin
  • Publication Date:
    February 2013
  • Report Number:
    EWEV_V3N2

Should Growth Return to the Euro Area Economy in 2013, It Is Likely to Be Weak

  • The Conference Board Leading Economic Index® (LEI) for the Euro Area has increased for the last three months, and its six-month growth rate remains positive
  • While some business confidence measures are improving, growth has probably not resumed yet
  • Political uncertainties in Italy and Spain show that the risk of instability remains high
  • The improved competitiveness of some troubled economies is due more to labor cost reductions than to productivity increases
  • Lower costs help some troubled economies increase exports, but productivity growth is essential for a recovery in investment

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