Month: January 2011

Economic prospects are very mixed across the European continent. On the upside, business confidence has improved and economic growth in Germany and France is picking up. On the downside, economic data in most other European countries remains disappointing and inflation is rising. The latter is reducing spending power and putting pressure on central banks in the EU to raise interest rates at a time when the economic recovery still looks fragile.

Overall the year 2010 was probably a better year for the European trade in tropical hardwood than 2009, but purchasing continues at levels well below those prevailing before the recession. There is still considerable uncertainty about future prospects, with widespread concern over stubbornly high levels of unemployment, public sector spending cuts and rising taxes as European governments try to bring down national debt.