All around the world we see that as a result of the ongoing economic recession, government and central banks had to apply measures that have not been used in a while to stimulate economic growth by boosting spending levels to increase overseas and domestic demand.

First on our calendars, is Germany's current account for December in which expectations show will narrow, and this is not a result of the higher exports yet due to the higher imports meaning that demand in the economy is improving while Germany depends heavily on exports for growth.

If the trade gap were to shrink then this is showing that exports remain weak as a result of the mounting of job losses that left unemployment rates soaring around the world. Without cash and a frozen lending system, means that consumers demand is low.

The global recession continues to stab trade between economies as the crippled demand leads to weaker exports and imports and weighs on economic growth. The narrowed trade surplus also shows that services between economies are being affected.

As industries suffer from the falling production output and the tight credit systems while at the same time having eroded profits, they right away do whatever it takes by cutting costs downs, which means their only option at a time of economic deterioration is to terminate staff therefore leading to a fragile labor market.

The softening labor market around the world does not only weigh on exports and imports in and out of the economy, yet holds back economic growth since without a functioning business cycle, growth prospects will be undermined although Germany grew by 0.7% in the third quarter following the second quarter expansion of 0.4 percent.

Also on our calendars today from Germany, we see that consumer prices are to be released in which expectations show will remain unchanged from the prior readings, yet the overall outlook on inflation in euro zone, is that it will remain anchored in the medium term supported by the measures taken in Germany worth 85 billion euros and by the ECB buying 60 billion euro dominated bonds.

Turning to the second biggest nation in Europe, the United Kingdom is going to release its trade balance in December, which expectations show that the trade deficit will narrow supported by the weaker royal currency as it becomes cheaper for overseas traders to import goods and services. The higher exports will support the GDP levels providing further aid to the nation while they expanded slightly in the fourth quarter by 0.1% and were the last nation to grow out of the major economies.

As the outlook for 2010 is bright, yet there are still major problems weighing on growth levels, like the high levels of unemployment, instability in the banking and financial systems along with widened budget deficits all around Europe, as there are major woes that the budget deficits might be the upcoming bubble to spread around the world.