Why Europe may atone for China

The latest batch of good news from Europe has the union exceeding expectations, in a trend that could eventually compensate for fears over China’s slowdown.

It would be an extraordinary ‘black swan’ event, but the eurozone economy could be on the verge of a strong upside surprise, which could more than offset any downside concerns from a slowing Chinese economy.

First a few basic facts.

According to the IMF data, total GDP in the European Union was around $US16.6 trillion in 2012 which is double the $US8.2 trillion from the Chinese economy.

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