- Howard Archer, chief European economist at IHS Global Insight
European exports rose for a third straight month in January, adding to signs the region is recovering after contraction in the fourth quarter. The 17-nation currency bloc posted a trade deficit of 7.6 billion euros in January, said the European Union's statistics agency Eurostat on Friday.
"The third successive rise in euro-zone exports in January boosts hopes that improving foreign demand will help the euro zone return to growth sooner rather than later," said Howard Archer, economist at IHS Global Insight, a consultancy.
"We expect euro-zone gross domestic product to contract further in the first quarter of 2012 and very possibly in the second quarter as well," added Mr. Archer.
"Companies are under serious pressure to keep their labor forces as tight as possible to contain their costs in the face of current weakened demand."
© Dukascopy Bank