Monday, January 17, 2011

Investments 'will aid economic recovery in Europe'

Investments could boost European economic recovery, according to a financial expert.

Equity investments could boost fiscal recovery in European markets, it has been suggested.

Product director at Invesco Perpetual Luke Stellini said buying equity funds could prove an important factor in driving economic growth in countries on the continent which have huge debt problems.

"Investment or capex is a very important indicator to monitor as these investment decisions have positive knock-on effects for employment, consumption and tax revenues," he stated.

Mr Stellini added that a period of time is required for highly indebted countries to make fundamental repairs to their balance sheets.

However, he noted that there are "increasingly positive signs" that people are making investments in these areas of the world, which is boosting their economic cycles.

Earlier this month, the European Commission revealed that the growth of the gross domestic product in the EU slowed down in the third quarter of 2010, according to data from the statistical office of the EU Eurostat.

Source: CFG
www.commercialfinancegroup.co.uk

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