Exports spark recovery in Euro region

With a strengthening global economy and a weak euro boosting demand for goods from the region, European exports in December were up 3.1 per cent over November, according to EuroStat, the Luxembourg-based European Union's statistics office.

BusinessEurope, Europe's biggest industry lobby group, has said it expects the region's exports to grow 4.7% in 2010. It also said economic recovery in Europe would be export-driven as demand for the region's products pick up alongside a rise in global trade.

The region reported a 13.4% decline in exports for 2009.

European goods have become more competitive as a result of the euro's 7.5 per cent drop against the dollar in the third quarter, and a consequent rise in exports has helped the euro-area economy emerge from its worst slump in more than six decades.

For now, economists expect export-led recovery to continue even as global markets continue to gain strength.

Trade surplus for the region, the EuroStat report said, widened to 7 billion euros ($9.6 billion) from 5.3 billion euros in November. Imports were also up 1.7 per cent from November, when they had increased 0.9 per cent.