Exports are declining but the country is maintaining overall growth by massive infrastructure expenditures and other domestic pump-priming measures. Key Sectors Still of major concern is mass unemployment resulting from restructuring of state enterprises, and a shaky financial system. After the whipping that China stocks traded in Hong Kong and the mainland suffered, it's unlikely they'll return to favor soon. The watershed arrival of the single currency, the euro, comes at a time when most of Continental Europe is commercially ascendant. The euro area is likely to match the U.S. in GDP growth in 1999 and outpace Asia.
Inflation is low and unemployment is falling.
Britain, not a member of the euro consortium, may be in a mild recession. Construction and mortgage industries are fairly buoyant. EXPOrts Soft global demand is hurting, but export orders in the euro-zone are nevertheless above average. The new currency will gain in strength against the U.S. dollar over the year. Stocks Earnings prospects aren't as bright, but solid stock-market gains are more likely in Europe than elsewhere.