Should Growth Return to the Euro Area Economy in 2013, It Is Likely to Be Weak
- The Conference Board Leading Economic Index® (LEI) for the Euro Area has increased for the last three months, and its six-month growth rate remains positive
- While some business confidence measures are improving, growth has probably not resumed yet
- Political uncertainties in Italy and Spain show that the risk of instability remains high
- The improved competitiveness of some troubled economies is due more to labor cost reductions than to productivity increases
- Lower costs help some troubled economies increase exports, but productivity growth is essential for a recovery in investment
