Much has been made of the French and German economies leading Europe out of a recession.

Figures released on  August 13th showed that the euro area’s GDP shrank by just 0.1% in the three months to the end of June, far less than the 2.5% slump in the previous quarter. The near stability was the result of an early exit from recession in the region’s two largest economies. The economies of both France and Germany grew by 0.3% in the quarter…..

The Economist magazine has also pointed to the strengths of several Asian economies.

The four emerging Asian economies which have reported GDP figures for the second quarter (China, Indonesia, South Korea and Singapore) grew by an average annualised rate of more than 10%……..

All very encouraging. And I want to draw attention to Israel’s economy. I have consistently stated that the country entered the downturn in a good position, structurally. It turns out that GDP grew by 1% in the second quarter of 2009, beating most predictions.

I am sure that the finance ministers of all these economies are gloating at these stats. Prime MinisterNetanyahu has already released a press statement promising more structural reforms, particular in the Land Administration.

Clearly, one quarter does not make a year and certainly not a long stretch of recovery. What it does point to is the potential of an improved economic future and thus a stronger platform for investment.