The Eurozone’s growth remains above 1.5%. Although still far from its potential, the economy has been resisting the poor worldwide economic performance. The Eurozone’s economy has been operating at two speeds: while Spain and Ireland lead the area’s economic growth, Greece has the worst economic performance and is currently in a recession.
The Eurozone’s growth remains above 1.5%. Although still far from its potential, the economy has been resisting the poor worldwide economic performance.
The Eurozone’s economy has been operating at two speeds: while Spain and Ireland lead the area’s economic growth, Greece has the worst economic performance and is currently in a recession.
The leading indicators of economic activity are all positive.
The ECB’s monetary policy is damaging the banking sector. Currently, the almost 4% of the bank’s profit are taken away because of monetary policies. We estimate that in a year this figure could reach 13.5%.
Consumer prices, and, in particular, production prices have deflationary trends. However, they do not have a negative impact on economic performance.
There is an increase in credit to households, and a decrease in credit to government. Fiscal consolidation has a “negative expulsion effect,” in which the credit that is not given to the public sector ends up in the hands of families and businesses.
The spread of the yield curve narrows, still far from its possible minimum. However, if the figure becomes negative, there are greater chances for a crisis in the Eurozone.
