Thursday, September 25, 2014

25/9/2014: Forecasting 2015-2016 Growth in the Euro Area: Pictet


Pictet's latest euro area forecasts for 2015-2016 show the full extent of the expected trend slowdown in growth (see details here: http://perspectives.pictet.com/2014/09/25/euro-area-gloomy-sentiment-threatens-recovery-hopes/)


Even dreaming up sustainable steady growth in 2015-2016, forecast growth rates are seen at around 1.5% pa on average, well out of line with the 'Golden' period of the euro so far, the H2 2003-H2 2007.  In other words, in 16 years of euro's existence, 45 quarters (or just over 11 years) is now expected to be associated with below 2% growth rates. Run by me again that tale of the 'European Century'?.. 

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