26 Jul 2013
Flash: Eurozone benefits from global demand – Goldman Sachs
FXstreet.com (New York) - Our forecasts anticipate moderate growth in the Euro area economy by year-end, as the drag from weak domestic spending wanes and foreign demand growth picks up, notes the Economics Research Team at Goldman Sachs.
Key quotes
“We expect net trade to continue to contribute positively to Euro area growth over the next 1-2 years, as external demand growth significantly outstrips sluggish Euro area domestic demand.”
“That net trade is likely to contribute positively to Euro area GDP growth because Euro area domestic demand is relatively weak is hardly a good news story, either for the Euro area or for the global economy. And, given downward revisions to global growth on the back of a weaker Chinese outlook, even this source of growth appears to be at risk.”
“Yet, taking as given downward revisions to emerging market growth, our analysis pinpoints two ‘good news stories’ for Euro area external trade.”
Key quotes
“We expect net trade to continue to contribute positively to Euro area growth over the next 1-2 years, as external demand growth significantly outstrips sluggish Euro area domestic demand.”
“That net trade is likely to contribute positively to Euro area GDP growth because Euro area domestic demand is relatively weak is hardly a good news story, either for the Euro area or for the global economy. And, given downward revisions to global growth on the back of a weaker Chinese outlook, even this source of growth appears to be at risk.”
“Yet, taking as given downward revisions to emerging market growth, our analysis pinpoints two ‘good news stories’ for Euro area external trade.”