Europe's economy to gather strength

Europe's economy may gather strength next year after global governments spent billions of dollars on stimulus measures, the European…

Europe's economy may gather strength next year after global governments spent billions of dollars on stimulus measures, the European Commission said.

The 16-nation euro region may expand 0.7 per cent next year and 1.5 per cent in 2011 after global governments provided "massive economic support," the Brussels-based commission, the European Union's executive, said in its quarterly report today.

However, it said uncertainty remains high and setbacks in the recovery could not be ruled out.

European companies are boosting output and investment to meet reviving global demand after the region's economy emerged from its worst slump in over six decades. While European economic confidence rose in November, a stronger euro and increasing unemployment are threatening to curb growth.

Bloomberg