Eurozone heading towards golden period, economists say

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13 Nov, 2017

Eurozone heading towards golden period, economists say

Having already enjoyed its strongest growth rate in a decade, Bloomberg reports that economists over at Credit Suisse Group AG and Oxford Economics believe the 19-nation eurozone is heading towards a golden period of low-inflationary expansion.

From the global financial crisis to its own sovereign debt turmoil, economists are now stating that Europe is no longer the sick man of the world economy.

In fact, the eurozone’s recovery was cemented further thanks to a positive stance from the latest Regional Economic Outlook. The report was published on Monday by the International Monetary Fund and examines more than 40 countries from the eurozone, Russia and developing economies in eastern Europe.

The report showed that growth across the European region is having a domino effect on the rest of the world. During a presentation of the report published on Monday, deputy director of the IMF's European Department, Joerg Decressin told Reuters that "growth in the euro area has been positive for 18 quarters, lately around 2.5%".

He added: “Many countries in eastern Europe have seen growth around or above 3% for some time already. So, this recovery has not only become broader but also stronger”.

A former international economist at the Federal Reserve and U.S. Treasury, Nathan Sheets said: "This is euro-area growth at its best. Our friends on the continent should enjoy it, it’s been a long famine".

Elsewhere, an economist at Oxford Economics in London by the name of Angela Talavera goes on a similar theme. “More than four years into the current expansion, most indicators signal the euro-zone economy is still somewhere around mid-cycle”, she said. “Absent an unexpected shock, we should see several more years of economic growth”.

For the euro area, economists surveyed by Bloomberg have raised their growth forecasts eight times this year. More data, due on Tuesday, is expected to highlight the region’s gain in momentum during the third quarter by 0.6%, faster than the long-term trend, according to Bloomberg Economics.

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