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Europe: Gradual Recovery is Underway

2:00 PM MST | January 7, 2011

A gradual economic recovery is underway in Western Europe, driven by stronger exports and a rise in consumption and investment. “Confidence has rebounded and financial conditions have improved,” says Pier Carlo Padoan, chief economist at the Organisation for Economic Cooperation and Development (OECD; Paris). However, the pace of recovery in the 16-nation Euro Area is likely to be slow “due to ongoing private-sector balance sheet adjustments, necessary fiscal consolidation, and prolonged adjustment to large imbalances in some peripheral countries,” OECD...

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