In 2017 and 2018, the Eurozone will continue its recovery with positive economic growth, according to the economic forecasts published on Tuesday 7 November by the European Banking Federation (EBF).
The economists of the banking organisation predict that 2017 and 2018 will be marked by strengthened economic growth in the Eurozone, fed into by several factors: the accommodative monetary policy of the European Central Bank, a strong global economy and robust internal demand, despite political uncertainty and geopolitical tensions still surrounding the world's economy, they stress in their report.
Eurozone GDP is hence expected to grow by 2.1% in 2017, before slowing down a touch in 2018, but still remaining in good health that year, growing by 1.9%. At the same time, the unemployment rate is expected to stand at 9.3% in 2017 before falling to 8.7% in 2018, the report anticipates.
Moreover, inflation is expected to slow down slightly in 2018. Following a substantial increase of 1.5% in 2017, European banks predict that consumer prices will increase by 1.3% in 2018.
Public finances will also continue to improve slowly. The EBF predicts that the budgetary deficit of the Eurozone public administrations will stand at 1.4% of GDP in 2017 and 1.2% of GDP in 2018. (Original version in French by Marion Fontana)