EUROZONE: Q1-Q3 growth at 0.4%, Q3 inflation 0.3%

Economic output in the Eurozone will increase by 0.4% during the first three quarters of this year respectively, according to joint data from the three research institutes Ifo (Munich), INSEE (Paris) and ISTAT (Rome).

 
This development will be driven by dynamic domestic demand.
Private consumption is forecast to grow by 0.5% during the first three quarters of 2016, stimulated by rising employment and low oil prices. In Germany, the influx of refugees will boost government expenditure and social transfers.
Investments in the Eurozone will pick up from 0.5% to 0.7% in the first three quarters due to rising capacity utilisation and low interest rates.
Assuming a crude oil price of 40 US dollars per barrel and a euro exchange rate of 1.12 US dollars, the inflation rate will rise to 0.3% in the third quarter.