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FXStreet (Barcelona) - The Goldman Sachs Team expects improvement in domestic demand to lead Euro area growth to climb higher, forecasting 2015 growth at 1.5% and 2016 at 1.7%.
Key Quotes
“For the Euro area as a whole, we forecast growth of 1.5% in 2015 and 1.7% in 2016. The growth outlook at the country level still shows divergent trajectories, with growth below 1% in Italy, but somewhat above that threshold in Germany and Spain.”
“We forecast Euro area growth to move higher, driven by modest improvements across all major components of domestic demand. Support from monetary policy will also contribute to that recovery. Still, the list of necessary adjustments in the periphery remains long, ranging from cleaning up the banking system and labour market reform to increasing competitiveness.”
