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Industries across the euro zone cranked up output in November and Germany ended the year with its strongest growth in five years, data showed on Thursday, pointing to an economic spurt that may be arriving earlier than some ECB policymakers expect.

Euro zone industrial output in the 19-country currency bloc surged 1.5 percent on the month and 3.2 percent year-on-year as firms stepped up production before Christmas. Both figures were far better than expected.

That gelled with a surprisingly large increase in Italian industrial production, also reported on Thursday, and similarly robust numbers earlier this month from France.

The German statistics office, meanwhile, estimated growth in the euro zone largest economy was around 0.5 percent for the fourth quarter and expanded by 1.9 percent in 2016, the strongest rate in five years.

Economists said these figures added to the evidence that euro zone gross domestic product will have picked up in the last quarter of last year.

The numbers are also relatively unexpected. Indeed, investment bank Citi ranked the euro zone at the top of its Economic Surprise Index at year-end, higher even than the rating for Britain’s unforseen post-Brexit performance.

The strong rise of industrial output “reinforces our belief that euro zone GDP growth could well have reached 0.5 percent quarter-on-quarter in the fourth quarter of 2016,” said Howard Archer, economist at IHS Global Insight.

Euro zone GDP grew a modest 0.3 percent in second and third quarter of last year, after a 0.5 percent rise in the first quarter.

Thursday’s figures add to a jump in the bloc’s economic sentiment which in December reached its strongest level since March 2011.

Euro zone consumer confidence also hit a 20-month high in December and has been rising for four consecutive months, European Commission’s estimates showed.

Monthly retail sales in the bloc did fall by 0.4 percent in November but only after a rise by 1.4 percent in October, by far the largest in years.

CAUTION

The surprising burst in economic activity may fire up criticism from economists and politicians in countries such as Germany that the European Central Bank is hanging on too long to its ultra-easy monetary policy, including asset purchasing.

The ECB, however, remains cautious about the outlook and will need sustained evidence before it moves.

Indeed, the improved outlook for the last quarter of the year may however not carry over to 2017 in part because it brings with it an increase in prices.

“We expect rising inflation to weigh on consumer spending growth, causing overall GDP growth to slow in 2017,” Jack Allen of Capital Economics said.

Euro zone consumer inflation in December was 1.1 percent, the highest level since September 2013, as oil prices are going up. It remains under the roughly 2 percent target sought by the ECB, however.

A Reuters poll of over 65 economists released on Thursday showed little change in forecasts for euro zone growth and inflation with respondents citing uncertainty from rising protectionist sentiments after the Brexit vote last June and Donald Drumpf’s U.S. election win.

In addition, the November euro zone industrial output data confirmed caution is still prevailing among firms, as political uncertainty over the coming months restrains investment.

The monthly output rose strongly for non-durable consumer goods, such as clothing or foodstuff, a sign that companies were betting on more consumption ahead of the Christmas shopping.

Production grew markedly on the month also for intermediate goods and energy, but it rose only slightly for capital goods, like machineries, a sign of only limited appetite for long-term investment.

Output of durable goods, such as cars or refrigerators, was the only component of the indicator to record a drop, by 0.1 percent on the month, confirming firms’ cautious approach as consumers were less keen to purchase more expensive items.

Originally reported by Reuters

Remember, no issue has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialised units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries Feel Free to Contact :

Mr. Gregor Novak,
Deputy Global Director, No. 11,
Operations Research & Implementation Division,
Email : deputy.gd.11@cwiilgroup.eu
Voice : +45.8176.1946
Social Media : LinkedIn – Twitter – Facebook

For Queries Specific to the EU Region :
Email : eu@cwiilgroup.com , hq@cwiilgroup.eu
Web : www.cwiilgroup.com , www.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

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MADRID, Aug 25 – Spain’s economy grew strongly in the second quarter as consumer spending stayed robust and demand for exports rose, though there were signs that a vibrant investment climate may be starting to cool after months of political uncertainty.

An economic recovery has retained momentum through eight months without a functioning government, as the country has continued to notch up one of the fastest growth rates in the euro zone this year.

Quarter on quarter GDP growth reached 0.8 percent, keeping pace with the first quarter and up a tenth of a percentage point from a preliminary estimate, Thursday’s final data from national statistics agency INE showed.

Consumer spending grew 3.6 percent year on year as people who kept their jobs through a recession that ended in 2013 took advantage of better times to buy big-ticket goods like washing machines.

Exports of services also performed well, INE said, even outside the tourism sector which has been boosted by record numbers of visitors this summer.

Spain’s acting economy minister, Luis de Guindos, said he expected the economy would eventually be impacted by the lack of a government.

However “from what we can tell there is no slowdown in the third quarter, it will be similar to the second and first,” he told reporters.

After two inconclusive national elections in December and June, the spectre of a third looms.

Politicians last week inched closer to ending the impasse when the People’s Party of acting Prime Minister Mariano Rajoy agreed terms to negotiate a pact with a smaller rival, Ciudadanos.

If the agreement is sealed, Ciudadanos will back Rajoy in a parliamentary confidence vote on Aug. 31 on forming a government. But even then Rajoy would still be short of the majority he needs, raising the possibility of third ballot in December unless others also agree to back him or abstain.

CHALLENGING AUTUMN

While fallout for gross domestic product so far has been slight, the political deadlock has triggered concerns that companies might delay expansion plans.

A slowdown in manufacturers’ investment in equipment and machinery extended into the second quarter, the INE data showed, when it grew at 7.8 percent year-on-year against 9.3 percent in the previous three months and almost 11 percent in the last quarter of 2015.

Analysts from Barclays said they expected investment growth to continue to decelerate, hit by declining business confidence. However, they raised their 2016 growth forecast by 0.3 percentage points to 3.1 percent, citing strong exports.

In a sign of the possible impact on government investment, spending on public works contracts slumped by a fifth in the first quarter, separate data showed on Tuesday, as decisions on infrastructure projects like roads, ports and trains were deferred.

On an annual basis the economy grew by 3.2 percent in the second quarter, INE said – below the 3.4 percent growth rate of the first but in line with a preliminary estimate.

The acting government expects the economy to expand 2.9 percent this year – one of the fastest rates in the euro zone – though scrutiny is growing over whether that will be enough to reach deficit targets without spending cuts.

Gross debt rose to a record high 1.1 trillion euros ($1.24 trillion) in June, Bank of Spain data showed on Wednesday, which the economy ministry said was equivalent to 100.9 percent of national output – well above 2016 goals.

Further delays to forming a government would bring Spain up against the EU’s deadline of mid-October to submit a 2017 budget. Missing that would damage investor confidence and raise the possibility of sanctions.

“Spain is heading towards a challenging autumn as a late government formation would mean delays to the budget, the expenditure ceiling and the new path of deficit target approval,” the Barclays analysts said in a note.

Originally reported by Reuters.

Remember, no issue has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialised units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries Feel Free to Contact :

Mr. Gregor Novak,
Deputy Global Director, No. 11,
Operations Research & Implementation Division,
Email : deputy.gd.11@cwiilgroup.eu
Voice : +45.8176.1946
Social Media : LinkedIn – Twitter – Facebook

For Queries Specific to the EU Region :
Email : eu@cwiilgroup.com , hq@cwiilgroup.eu
Web : www.cwiilgroup.com , www.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

Foreign Direct Investment or FDI is a kind of international investment made with the intention of acquiring an ever-lasting financial interest in an economy. If done strategically then this kind of direct investment can really bring huge benefits to investors. The importance of liberalization has made many countries open up their economies. Considering this in mind, one continent which has really banked on this is Europe and the formation of European Union only corroborates this fact. The integration of 27 countries in Europe has really made it one of the most preferred destinations in the world for investment.

The Main Advantages EU Provides to Investors:

The European Union views FDI not as a mere sense of investment but also a way of promoting economic and social growth and development. The investment policy of the European Union is tilted more towards providing investors with a kind of stability and legal certainty coupled with an environment conducive to carry out business and in accordance with the International rules. It has abolished all the trade barriers that were acting as a hindrance for free trade. Furthermore, the European Union has also adopted a common currency which has served as a major fillip towards increasing trade in the European Union.

Just as it has good legal policies which encourage foreign investment, in the same way the European Union is also gifted with large natural resources. It has huge reserves of oil and natural gas and coal. Thus, it has a good blending of resources that really work in the advantage of doing business than any other part in the world.

The other major thing that makes the European Union unique from other destinations is the diverse booming industries in various countries within the EU. There is no such sector in the EU where you can’t invest. Every industrial sector in EU has room for expansion and is in the need of foreign investment.

The services sector forms the core of the European Union as it accounts for a major chunk of the entire Economy of the EU. Some of the key sectors worth investing in the European Union are Aerospace and Defence, Automotive, Biotechnology, Information and Communication Technology (ICT), Nanotechnology, Nuclear, Logistics, Engineering, Real Estate and many others.

As the European Union is a host of comprehensive range of countries, it has really become one of the best destinations for investing in the Real Estate sector. The diverse property opportunities across the Union and the well established rental markets have already attracted loads of foreign investors. Bulgaria, Croatia, Hungary, Czech Republic, Poland, and Romania are the hottest destinations for investing in Real Estate.

Some Facts About the European Union:

According to the International Monetary Fund (IMF), the EU is the largest economy in the world and has a total Gross Domestic Product (GDP) of $16,447.26 billion. The European Union has always been known for its investor-friendly policies since the early 80s. In the year 1992, the European Union alone accounted for more than 50% of the foreign investment worldwide. Such is the intensity of foreign investment in EU that the ratio of foreign investment to domestic investment also saw an increasing trend in the past two decades. The FDI inward inflows of the European Union accounted for a whooping 62.2 billion Euro in the year 2004 whereas the outward FDI flows of the EU accounted for a mammoth 114.9 Euro in the same year.

As far as trade is concerned, the various economic policies of the EU really make it one of the best trading destinations in the world. This is evident from the fact that the European Union is the largest exporter as well as largest importer in the entire world. The EU exports large amounts of Machinery followed by Energy, Chemicals and Transport Equipment and Textiles Clothing. Other commodities that are exported by the EU include dairy products, meat, iron and steel, wood pulp, paper products, alcoholic beverages, pharmaceuticals, motor vehicles, aircraft, plastics and paper products. Machineries also account for large number of imports of the EU followed by Transport equipment and chemicals, plastics, crude oil, textiles, metals, clothing, vehicles and aircraft.

Trends Prevailing in the European Union:

Despite the global financial meltdown, European Union is showing a speedy recovery and EU’s economy has started showing an upward trend. According to the commissioner of the European Union, the GDP of the European Union is expected to grow twice as predicted in the year 2011. The GDP of the EU is expected to grow by a 1.8 percent than the predicted 1 percent with Germany having the largest jump of 3.4 percent.

Measures Taken by the Government:

The European Union Commission has come up with a proposal with a strategy known as the Europe-2020 Strategy to help the EU recover to economic growth at a faster rate. For this, the Directorate-General for Economic and Financial Affairs in its report has analysed the bottlenecks that may come against this growth and also highlighted the need to address the issues hindering the economic growth of the Commission. The monetary policy of the EU is no longer restrictive and businesses can once again gain free access to credit and other business activities.

To conclude, the European Union is really one of the most important destinations which should not be overlooked by investors who want to expand their reach across the world. Its exuberant natural resources and ever-increasing sectors really make it one of the most preferred destinations for investment in the world today.

These materials are not intended and should not be used as legal advice or other recommendation. If you need a legal opinion on a specific issue or factual situation, please contact a lawyer. Anyone using these materials should not rely on them as a substitute for legal advice.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

CWIIL Group of Companies is a global group of multi-specialized units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries Feel Free to Contact :

Mr. Gregor Novak,
Deputy Global Director, No. 11,
Operations Research & Implementation Division,
Email : deputy.gd.11@cwiilgroup.eu
Voice : +45.8176.1946
Social Media : LinkedIn – Twitter – Facebook

For Queries Specific to the EU Region :
Email : eu@cwiilgroup.com , hq@cwiilgroup.eu
Web : www.cwiilgroup.com , www.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

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