Monday, August 14, 2006

Euro-zone Growth Accelerates

Euro-zone GDP grew 0.9% compared to the previous quarter, the highest in 6 years. This is the first time since 2001 that the Euro-zone had higher growth than America, who grew 0.6%. That is rather telling of the dismal structural growth rate in most of the Euro-zone.

Euro-zone growth is really basically the same story as Sweden's: weak structural growth in both and a cyclical upswing now. The cyclical upswing is however currently stronger in Sweden as the Riksbank's policies are even more inflationary than that of the ECB.


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