The outlook is economic growth in the euro
area should get moving faster in 2016.
A professional audit company based in the
UK foresees that the EU will realize a GDP growth of 1.2 percent for this year
which will increase to a yearly 1.6 percent from 2016 until 2018.
This positive development is attributed to
low crude prices, confidence in the banking industry, weak single currency, and
alleviating monetary austerity.
The euro zone is also expected to perceive
export growth of 3.7 percent this year and a little higher at four percent
during the next three years.
However, eight EU nations have public debt
at more than 90 percent of GDP. At the same time, six of these nations have little
space for economic stimulus. If inflation does not accelerate faster in the next
few years, it remains uncertain if the massive sovereign bond acquisition
program will have substantial impact.
A number of governments in the zone have
already started to reduce austerity programs which should spur the growth of domestic
demand.
The drawback is slower growth in China and
other Asia-Pacific countries, which are primary destinations for EU exports and
investments and exports, will make the region more at risk. This can be
aggravated by immensely feeble growth in France as well as retrenchment in
Italy.
The rapidity of euro area economic progress
from 2016 to 2018 will be over ½ percentage point slower compared to 10 years
ago when it reached 2.3 percent annually.
Germany is ahead of France while Italy is
sluggish. Other countries such as Spain, Portugal and the Netherlands were
stable. The EU as one overcame expectations.
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