• Moody’s upgrades Eurozone growth outlook; downgrades U.S.

    Source: FxWire Pro - Commentary / 30 Aug 2017 07:32:21   America/New_York

    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.

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