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Eurozone: Growth Expected to Accelerate Gently

Summary:
Oct 6, 2015 Economic growth in the Eurozone is expected to accelerate gently in the last quarter of 2015. It will rise to 0.5 percent, after reaching levels of 0.4 percent 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 percent for 2015 compared to 2014. The cautious recovery is being driven by domestic demand; private consumption is expected to increase by 1.8 percent by the end of the year. Investment is expected to grow by 1.7 percent, industrial production will rise by 1.5 percent. Assuming an oil price of 48 US dollars per barrel and an exchange rate of 1.12 US dollars per euro, inflation will accelerate somewhat to 0.5 per-cent in the first quarter of 2016, from a level of around zero in 2015. The situa-tion 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. The Eurozone Economic Outlook is jointly produced by the German Ifo Institute, the French Insee institute and the Italian Istat.

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Oct 6, 2015

Economic growth in the Eurozone is expected to accelerate gently in the last quarter of 2015. It will rise to 0.5 percent, after reaching levels of 0.4 percent 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 percent for 2015 compared to 2014. The cautious recovery is being driven by domestic demand; private consumption is expected to increase by 1.8 percent by the end of the year.

Investment is expected to grow by 1.7 percent, industrial production will rise by 1.5 percent. Assuming an oil price of 48 US dollars per barrel and an exchange rate of 1.12 US dollars per euro, inflation will accelerate somewhat to 0.5 per-cent in the first quarter of 2016, from a level of around zero in 2015. The situa-tion 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.

The Eurozone Economic Outlook is jointly produced by the German Ifo Institute, the French Insee institute and the Italian Istat.

Hans-Werner Sinn
Präsident des ifo Instituts a.D., Professor für Nationalökonomie und Finanzwissenschaft an der Universität München Impressum: http://www.hanswernersinn.de/de/impressum

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