International growth

October 14, 2014

Adding to the positive domestic outlook in Australia, there are also very encouraging signs emerging on the global economic front.

For the first time in a very long time, there has been good news coming out of Europe in the form of a positive quarter of GDP growth.

The Euro-zone, led by the big economies of Germany and France, grew by 0.3% in Q2. This news has mostly slid under the radar, with virtually no fanfare from markets or media, and while it is only modest growth, it should not be discounted.

The fact that Europe has posted a quarter of GDP growth is a very welcome development for global economic growth.

With China stabilising with growth of 7% and the USA clearly expanding, a sign of growth in Europe was the final missing piece in the puzzle. Having Europe back in positive territory completes a bright picture for synchronised global economic growth.

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