The 10.2% unemployment figure is far worse than what economists had expected, and they don’t see any sign of relief until next year. While the pace of layoffs has slowed, the unemployment rate is continuing to climb, reports Javier C. Hernandez for The New York Times.

Unemployment isn’t just as issue here, either; millions around the world don’t expect to see relief in the form of jobs anytime soon. The European Union forecast unemployment in the eurozone to rise to 10.7% in 2010, up from 9.5% this year. Unemployment ranges from 3.5% in the Netherlands to 18.3% in Spain, reports Greg Keller for the Associated Press. In China, the official urban unemployment rate is 4.3% in the third quarter. Brazil’s unemployment was 8.1% in August, almost unchanged from the previous month.

Gold futures have soared to a record $1,100 an ounce today. While some profit-taking briefly sent gold lower, it resumed its course and analysts expect it to continue to move higher, reports Allen Sykora for The Wall Street Journal. SPDR Gold Shares (NYSEArca: GLD) is up about 0.4% year-to-date. (More on gold can be found here).

Businesses slashed inventories for a record 13th straight month in September, although sales rose for the sixth consecutive time. Many hope that improving sales figures will encourage businesses to start lifting production, although a rising jobless rate heightens fears that consumers won’t start spending anytime soon, reports Martin Crutsinger for the Associated Press. (An ETF to play holiday shopping).

The world’s largest insurer, AIG (NYSE: AIG) reported that it was profitable for the second consecutive quarter. Although things have stabilized, the company’s CEO said that earnings will remain choppy while they restructure.  SPDR KBW Insurance (NYSEArca: KIE) is up about 0.6% this morning.

G20 Finance Ministers are meeting this week to discuss financial reform and economic recovery. While these economies have put in place certain policies in order to push along a recovery, they’re not policies anyone wants to keep in place forever. The general consensus is that it’s too soon to reverse the measures, but it’s not too soon to begin talking about when and how it would happen. Government debt in developed G20 countries is likely to reach 118% of annual national income in 2014, reports Andrew Walker for the BBC.

For more stories on the global economy, visit our global ETF page.

According to Gary Gordon for ETF Expert, there is a slight discernible difference between the five largest net exporters and net importers as shown in their respective ETF growths.

Net importers’ five-year total % change:

• Vanguard Total U.S. Market (NYSEArca: VTI): 12.8%
• iShares MSCI United Kingdom (NYSEArca: EWU): 10.7%
• iShares MSCI Spain (NYSEArca: EWP): 91.7%
• iShares MSCI France (NYSEArca: EWQ): 35.1%
• The India Fund (NYSE: IFN): 129.4%

Net exporters’ five-year total % change:

• iShares FTSE China 25 Index (NYSEArca: FXI): 173.9%
• iShares MSCI Germany (NYSEArca: EWG): 53.9%
• Central Europe/Russia Fund (NYSE: CEE): 91.3%
• iShares South Korea (NYSEArca: EWY): 90.5%
• iShares MSCI Netherlands (NYSEArca: EWN): 46.3%

The data shows that percentage gains are leaning toward exporters and developing countries, more export-dependent, are producing larger percentage returns.

Gordon makes the distinction that successful investing in seemingly export-type countries is more dependent on overall economic growth and less to do with the large “net exporter” moniker.

For more information on ETF trends, visit our trend following category. Read more of Gary Gordon’s ETF observations at ETF Expert.

Max Chen contributed to this article.

Germany and France both reported increases in growth and the numbers have convinced some analysts that Europe’s economy is recovering, perhaps even faster than that of the United States’, reports Charlie Parker for Citywire.

There are some risks, though:

• Some economists think, however, that the improved numbers may not be a show of overall economic strength but rather a fall in imports as exports remain the same, which would come up as a stronger net trade.

• The unemployment rates in Germany and France may also be misleading because of the larger public sector. It is seen that the fall in production in Europe did not reflect an equal fall in unemployment. The economies could suffer later from the excess weight.

• The European Central Bank has cut its benchmark interest rate to a record 1% low and begun a $86 billion program of buying assets, writes Simon Kennedy for Bloomberg. Officials are regarding the economic recovery with caution and won’t be reversing their policies any time soon.

• The ECB projected that the European economy may contract 4.6% this year and contract 0.3% in 2010. Deutsche Bank estimates a 1.3% contraction next year and UBS AG predicts 2.1%.

One way to access the European market is through the PowerShares FTSE RAFI Europe (PEF) ETF. PEF, currently up 42% year-to-date, tracks the performance of the largest European equities in the FTSE RAFI Europe Index, which normally invest 90% of its total assets in securities that comprise the Index and ADRs based on securities in the Index, as stated by InvescoPowerShares. The ETF has 526 holdings with an expense ratio of 0.75%.

• Country allocations: United Kingdom 30.6%, France 14.7%, Germany 13.3%, Italy 7.6%, Switzerland 6.4%, Netherlands 5.8%, Spain 5.3%, Sweden 4.0%, Ireland 2.6%, Belgium 2.5%

For more information on Europe, visit our Europe category.

Max Chen contributed to this article.

The Dutch economic policy bureau (CPB) estimates a 4.8% contraction for 2009, a budget shortfall of 6.7% of GDP and a 9.5% increase in the unemployment rate for 2010, according to NRC Handelsblad. The pessimistic outlook is attributed to diminishing world trade and consumer trends leaning more toward saving than spending.

It is estimated that the Dutch economy will drop 15% on waning international trade alone for next year. Dutch exports are projected to fall 17.3% with imports down 14% for 2009.

The recession may be deeper than previously thought, and a risk of deflation still looms over the Dutch economy, reports James Pethokoukis for Reuters. The Dutch Central Bank (DNB) paints a gloomier picture for the economy with its estimated contraction of 5.4% for the year.

Problems in the financial sector could creep up from writedowns that most banks and insurers deem likely. The IMF thinks $4 trillion will be needed and $1.5 trillion has already been written off so far.

• iShares MSCI Netherlands Investable Market Index (EWN): up 2.9% year-to-date

For more information on the Netherlands, visit our Netherlands category.

Max Chen contributed to this article.

So long as U.S. multinational corporations keep their earnings overseas, they are legally safe from paying taxes toward their home base. Netherlands is a corporate tax haven for U.S. multinationals, and together with Ireland and Bermuda, it is sheltering companies’ earnings from the U.S. tax authorities, so says Barack Obama.

This practice is fully legal but the trade-off is a detriment to the U.S. economy, reports Associated Press on Dutch News. U.S. companies typically pay a 35% tax for corporate earnings, or around 22% after certain allowances.

Obama is working on a proposal to cut overseas tax benefits for U.S. multinationals.The idea is to cut tax benefits for those U.S. corporations that invest overseas and use some of their forecasted revenue to gain tax credits for investment in research and development, reports Quentin Fottrell for The Wall Street Journal.

The worst-case scenario for places such as Ireland is less foreign development as well as less attractiveness for multinationals. Despite this speculation, the consumer confidence remains solid within the European Union. A monthly survey of companies and shoppers across the European Union and in the 16 countries that share the euro showed renewed optimism for the first time since May 2007, reports Aoife White for San Diego Union Tribune.

• iShares MSCI Netherlands Investable Market Index (EWN): up 0.1% year-to-date

Infrastructure ETFs and shares may be getting another chance to build up as recent talks of government spending are allocating $50 billion in stimulus money toward the sector. Trang Ho for the Associated Press reports that estimates within the industry have targeted $2.2 trillion in repairs are necessary over the next five years to help repair the aging infrastructure.

Companies involved in building roads, bridges, transportation lines, transmission grids and anything used by the public stand to make money from government spending. Worldwide, government spending plans all involve infrastructure spending to help jump-start their economies. In the United States, checks may be mailed out within the next six months for government projects to ramp up.

And it’s not just the United States that’s turning an eye to its infrastructure sector:

• Singapore will spend $12 billion to $13 billion on a new cruise liner terminal, roads and parks and more
• Ontario, Canada, will put another $26.5 billion into roads, schools and hospitals over the next two years
• The Netherlands pledged $8 billion in deficit spending, on top of a $27 billion package

• iShares S&P Global Infrastructure (IGF): down 20.8% year-to-date

The global recession has hit the Netherlands and its exchange traded funds (ETFs) hard, but what lies ahead for the economy?

The Netherlands’ Central Planning Agency, or CPB, states that the Dutch economy is forecast to contract 3.5% in 2009, the largest contraction since 1931.  As for 2010, the agency expects the nation to contract another 0.25%.

In addition to this alarming statistic, the Global Financial Newswire reports the following gloomy numbers:

• Private consumption is expected to drop by 0.25%; however, purchasing power is expected to rise by 2%
• Consumer spending is expected to decline by 0.5%
• Business investments are forecast to decline by 11% in 2009 and by 12% in 2010
• Consumer price inflation is expected to be around 1% in both 2009 and 2010
• The increase in average contract wage is expected to be 3% for 2009 and 1.5% for 2010, whereas unemployment is expected to jump to 5.5% for 2009 and 8.8% for 2010
• GDP is expected to shrink by about 3% because of a drop in exports of approximately 10.75%
• The government’s deficit is expected to be around 2.8% of GDP for 2009 and 5.6% of GDP in 2010

These are downbeat numbers for sure, but one shouldn’t count out the economy yet – the government has been struggling to come up with a rescue plan for the economy.

The iShares MSCI Netherlands Index (EWN) is down 17.6% year-to-date.

Kevin Grewal contributed to this article.

Cows and pigs dot the landscape on the green plains in southern Netherlands, which appear to scientists as possible smokestacks, rich with methane gas to be captured, reports Elisabeth Rosenthal for the International Herald Tribune.

A group of farmers-turned-scientists are breaking new ground in the creativity of alternative energy production, where they cook the manure from 3,000 pigs and trap the methane gas to be delivered to the local power grid.

The so-called Sterksel project is an example of the eco-conscious Netherlands, where their concern also lies in the problem of meat consumption growing around the world, and the fact that the over-production of farm animals actually produces 18% of the greenhouse emissions each year. The “methane capture” project will alleviate both concerns a bit, and methane has proven itself to be more efficient than carbon dioxide.

California is already working on a program to encourage systems in pig and dairy farms like the one in Sterksel.

• Market Vectors Global Alternative Energy (GEX): down 67.2% year-to-date

• UBS E-TRACS CMCI Livestock Index (UBC): down 19.4% since April 4 inception

Seasonally adjusted gross domestic product (GDP) rose a scant 0.2%, mostly on weakness in the manufacturing and construction sectors, report Philip Blankenship and Antonia Van De Velde for Thomson Financial News. Economic activity rests upon their domestic demand while external demand did not add anything to their expansion.

Meanwhile, the Dutch government is threatening to rise duties on beer, during an especially sensitive time, reports Louise Ireland for Forbes. The Dutch already raised duties on wine 16%, but the question remains, “Why would the Dutch hit their own product?” Raising duties on beer in the Netherlands could send consumers to neighboring Belgium and Germany for their pilsners.

The Netherlands and Germany are Europe’s No. 1 beer exporters, and half of all beer in the Netherlands is consumed locally, making it especially sensitive to taxation.

The president of the European Central Bank said this weekend that the economic squeeze in Europe has hit “rock bottom.” He expects a gradual revival throughout 2009, reports AFP.

Related ETFs:

• iShares Belgium Investable Market Index (EWK), down 30% year-to-date
• NETS Belgium 20 Index (BRU), down 11.5% since June 9 inception
• NETS AEX Index Fund (AEX), down 18.6% since June 9 inception
• iShares MSCI Netherlands Index (EWN), down 21.2% year-to-date

If you were wondering, though, Exxon Mobil (XOM) has solved the mystery by reporting a second-quarter profit of $11.7 billion, the biggest profit from operations ever by a U.S. corporation, reports John Porretto for the Associated Press. But in spite of that, the company’s shares still fell because earnings were off from Wall Street’s expectations.

Revenue was also up 40% from one year ago. Exxon Mobil has been setting lots of records lately: the company also holds the record for the top six most-profitable quarters for a U.S. company, as well as the largest annual profit.

Shell (RDSA.L) also reported a net profit of $11.6 billion for its second quarter, says Toby Sterling for the Associated Press. The numbers make for a 33% year-over-year increase that owes much to high oil prices and a weak dollar. Its selling price of a barrel of oil was $112, up from $64 a year ago, pushing earnings in its production and exploration arm up 90%.

Oil is down in trading today, last seen below $126 a barrel. It’s been driven down by fresh news about continuing weakness in the U.S. economy, reports Pablo Gorondi for the Associated Press. The gross domestic product for the first three months of 2008 was revised downward, to 0.9%.

Just a few weeks ago, crude oil touched on its record high of $147.27.

Among the ETFs that could react to continuing news from the oil sector include:

• NETS AEX Index Fund (AEX): launched May 14; Shell is 14.1%
• iShares Dow Jones U.S. Energy (IYE), up 4% year-to-date; Exxon is 23.3%
• PowerShares DB Oil Fund (DBO), up 38.4% year-to-date