Eurozone: Near-term strength – BNPP

Dominic Bryant, Senior European Economist at BNP Paribas, notes that the Eurozone activity indicators have strengthened of late.

Key Quotes

“In part, this reflects global trends. We have revised up our expectations for Q4 2016 and Q1 2017 growth accordingly.”

“As a result, we now forecast growth of 1.7% in 2016 and 1.5% in 2017. However, the annual numbers understate the extent of the slowdown this year.”

“A number of headwinds are likely to bite during 2017, the most important of which is the squeeze on consumers’ real income from higher inflation.”