Europe's economy may turn "positive"

Expats who make international payments to their overseas assets may benefit from slowing deflation rates in the eurozone, new figures indicate.

Research by analyst Eurostat recently revealed that August saw a 0.2 per cent fall in consumer prices throughout Europe, which has lead experts to suggest the recession may be bottoming out.

Data released by the analyst in July showed that deflation stood at a high of 0.7 per cent in the region, raising fears that as prices dropped consumers may spend less and push the economy into a downward spiral.

Howard Archer, chief European economist at finance expert IHS Global Insight, stated his belief that the latest research may indicate signs of recovery in the economy, which could have an impact on expats who transfer money to their overseas businesses.

He said: "It seems highly probable that July marked the deepest deflation in the eurozone and consumer prices will turn positive year-on-year within the next couple of months."

Meanwhile, UK finance minister Alistair Darling recently urged European countries to financially contribute to the International Monetary Fund in order to stimulate the worldwide economy, the Guardian reports.

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By Linsey Summers