EUROZONE: Recovery to lose momentum, says Ifo

While assessments of the current economic situation brightened slightly, the six-month economic outlook clouded over markedly, Ifo said, adding that the economic recovery in the euro area economy will lose momentum.
Assessments of the current economic situation improved everywhere with the exception of Germany, Finland and Lithuania. It nevertheless remains favourable in Germany. In Greece and Finland, as well as in France, Italy, Spain, Austria, Portugal and Cyprus assessments of the current economic situation remained negative on balance.
According to experts, it remains satisfactory in most other euro countries.
The six-month economic outlook in most countries was less positive than three months ago. In the eastern European members states of Estonia, Slovenia and Slovakia in particular, optimistic expectations about future economic developments were strongly downwardly revised. Economic expectations only improved slightly in Finland, Lithuania, Austria and Cyprus.
The forecast of the average inflation rate for 2015 increased to 0.8% from 0.6% in the euro area. Mid-term (2020) inflation expectations for most euro countries remain at 2%.