According to EC´s economic forecast, the EU and the eurozone will continue their modest recovery in the two years to come. The euro bloc is expected to grow by 1.6% this year, by 1.8% in 2016 and by 1.9% in 2017. The whole EU should grow by 2.0% in 2016 and 2.1% in 2017. This is expected despite geopolitical turmoil and remaining questions over Greek recovery. Greece is expected to fall back into recession this year (and stay there in 2016), following months of uncertainty and bailout talks. However, ECB stimulus policy and low oil prices support economic recovery. Spain, Portugal and France are the biggest questions concerning budget deficits – all three should make more efforts, but the political instability in Portugal following inconclusive elections last month and upcoming elections in Spain (general elections before Christmas) and France (regional elections) complicate the situation.
19th June 2018