In its year-end economic outlook, EBF chief economists see a slower than expected economic recovery in the euro area. They have lowered their growth outlook for this year to 0.8 percent, down from the estimate of 1.1 percent that they presented in June. The EBF has lowered its 2015 growth projection for the euro area to 1.2 percent, down from 1.5 percent foreseen in June. The rate of inflation in the euro area will reach 0.6 percent in 2014, and one percent in 2015, which remains below the European Central Bank’s medium-term target of slightly below two percent. A boost to growth is needed to see a significant fall in euro area unemployment rates, now expected to stay little changed in the next two years (11.6 percent in 2014 and 11.3 percent in 2015).
Providing key evidences about the need for policy makers to act with determination to provide a confidence boost so that businesses can start investing again, the outlook underlines the importance of pressing ahead with economic reforms, strengthening investment, improving the functioning of the single market for financial services and promoting SME’s financing.
EBF Economic Outlook: Recovery needs a boost – full text
EBF contact: Riccardo De Bosio (firstname.lastname@example.org)