The Associated Press reports that there is further evidence that the pace of economic recovery across the 18 countries Eurozone is picking up, and gathering momentum in the more debt challenged countries.
Financial research company Markit indicates an annualized growth rate of 2 percent, which although not considered an economic boom nonetheless is the best growth rate seen in nearly three years. Other estimates have the growth rate closer to 1 percent this year and 1.5 percent next. Potential regional conflicts in Ukraine could dampen these expectations and economists are watching closely other world events that may impact Eurozone growth as well, such as an economic slowdown in China.
The question for US exporters is how this will affect their international business opportunities in this region. S&P Chief Economist for Europe, Middle East and Asia Michel Six said “the key question whether this initial revival will gain fresh impetus from the private sector through stronger consumption and more buoyant investment, or remain overly dependent on foreign trade.”
Ideally, European consumption picks up and this will bode well for US exporters assuming the currency exchange rate remains favorable (now at 72 Euros to the US Dollar). So, for the short term, it looks like the Eurozone remains an area of good potential for US exports and should be on the short list of international marketing investment.