Trailing behind (Q3 2009)

On the whole, signs of recovery have been less convincing in Europe than elsewhere. A relatively cautious policy stance and the delayed effects of the credit crunch suggest that the euro-zone, in particular, will be the last of the major economies to emerge from recession. Trade-reliant countries like Germany look set to benefit relatively quickly from a modest improvement in global demand, so there is hope that European activity will start to expand next year. But with government debt surging throughout the region, necessary fiscal consolidation will mean that any recovery is lacklustre.