31 Dec 2015
Eurozone: Modest growth to continue in 2016, slow in 2017 – Deutsche Bank
FXStreet (Delhi) - Research Team at Deutsche Bank, forecasts for euro area GDP growth in 2016 remains unchanged at 1.6%.
Key Quotes
“A modest pick-up in global growth should help as should the benefits of easier monetary and fiscal policy, including a weaker currency. Compared to our previous forecasts, policy easing has increased in volume. This is balanced by less external support than we were expecting earlier. Political and geopolitical risk may weigh too. The net impact is we see a little less growth in exports, private consumption and investment in 2016, a little more from government consumption but overall GDP growth broadly unchanged at 1.6%.
Our expectation is that euro area GDP growth will decelerate in 2017 to 1.5%. Full-year GDP growth masks the true extent of the slowdown: average annualized rates of growth should slow from 1.7% in 2016 to 1.4% in 2017. Global growth should accelerate into 2017, but we expect headwinds from rising oil prices, the euro exchange rate, fiscal policy and political uncertainty.”
Key Quotes
“A modest pick-up in global growth should help as should the benefits of easier monetary and fiscal policy, including a weaker currency. Compared to our previous forecasts, policy easing has increased in volume. This is balanced by less external support than we were expecting earlier. Political and geopolitical risk may weigh too. The net impact is we see a little less growth in exports, private consumption and investment in 2016, a little more from government consumption but overall GDP growth broadly unchanged at 1.6%.
Our expectation is that euro area GDP growth will decelerate in 2017 to 1.5%. Full-year GDP growth masks the true extent of the slowdown: average annualized rates of growth should slow from 1.7% in 2016 to 1.4% in 2017. Global growth should accelerate into 2017, but we expect headwinds from rising oil prices, the euro exchange rate, fiscal policy and political uncertainty.”