Business

EUROZONE: Growth expected to accelerate gently

by fm

6th October 2015

570 views

1 min read

Economic growth in the Eurozone is expected to accelerate gently in the last quarter of 2015, rising to 0.5%, after reaching levels of 0.4% in the second and third quarters of the year respectively, according to forecasts by the three economic research institutes Ifo (Munich), Insee (Paris) and Istat (Rome).

They predict growth of 1.6% for 2015 compared to 2014. The cautious recovery is being driven by domestic demand; private consumption is expected to increase by 1.8% by the end of the year.
Investment is expected to grow by 1.7%, industrial production will rise by 1.5%. Assuming an oil price of $48 per barrel and an exchange rate of $1.12 per euro, inflation will accelerate somewhat to 0.5% in the first quarter of 2016, from a level of around zero in 2015.
The situation in China could have a negative influence on the figures, while a sharper increase in investment after years of reticence may have a positive impact.