Moody’s upgrades Eurozone growth outlook; downgrades U.S.
Source: FxWire Pro - Commentary / 30 Aug 2017 07:32:21 Eastern Standard Time
Last six months or so changed the hearts of the economists at Moody’s who were previously expecting downbeat growth performance in Eurozone thanks to rising populism and upbeat performance in the United States led by investment boom and infrastructure spending. The election victory of Emmanuel Macron over the Populist candidate Marine Le Pen and continued political gridlock in Washington seems to have changed the forecast.
Analysts at Moody’s are now expecting an above potential growth in Eurozone in 2017, as well as, in 2018. German GDP growth forecast was upgraded to 2.2 percent for 2017 and 2 percent for 2018. French GDP forecasted at 1.6 percent for both 2017 and 2018. Italy’s GDP growth was forecasted higher at 1.3 percent for both 2017 and 2018. The report notes, “Robust survey indicators in euro area countries suggest that growth should accelerate through the rest of the year, while the consumer confidence indicator at a 16-year high bodes well for the consumer-driven recovery.”
On the other hand, the growth outlook for the United States was downgraded by 0.2 percent. Growth for 2017 is now forecasted at 2.2 percent and 2.3 percent for 2018.© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.