The Eurozone may finally be turning a corner, according to latest research by economic think tank IHS Global Insight.
Greater consumer spending, higher employment, and better than expected news on inflation have all benefitted the beleaguered economic bloc.
The euro is now more competitive, benefitting Eurozone exporters while oil prices remain low, a further boost to industry.
“Improving investment is not only key to growth in the near term but also to boosting potential output growth across the Eurozone,” says Howard Archer, chief economist at IHS Global Insight.
The European Central Bank’s (ECB) policy of quantitative easing, which began earlier this month, is also showing signs of increasing sentiment, Archer says. The extraordinary monetary policy has helped to boost inflation, one of ECB president Mario Draghi’s aims with the programme.
While Europe does look on the mend even in the peripheries such as Spain and Italy, Greece remains in the doldrums with credit rating agency Fitch downgrading the country to a “substantial credit risk” last Friday. The research says that there is heightened uncertainty as the government seeks to come to an agreement with its creditors.
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