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2 Jun 2015
Eurozone GDP risks skewed to the upside – Goldman Sachs
FXStreet (Barcelona) - Economists at Goldman Sachs upgrade their forecast for 2016 Eurozone GDP, and further note that near-term risks for growth remain tilted to the upside.
Key Quotes
“Our economists recently upgraded 2016E Euro-area GDP to 1.9% from 1.7. And this comes after two previous upgrades to Euro-area GDP earlier in the year. Moreover they continue to argue that the near-term risks are skewed somewhat to the upside.”
“The recent GDP upgrades have been to Italy and Spain where the recovery has strengthened in recent months, lead indicators have generally been strong and loan growth has picked-up. We now forecast 2.8% GDP growth in Spain in 2015 and 2.4% in 2016. Spanish growth this year is likely to be stronger than in the UK or the US. Italy is growing more slowly but the forecast changes if anything are more marked, having been in recession in the previous three years.”
Key Quotes
“Our economists recently upgraded 2016E Euro-area GDP to 1.9% from 1.7. And this comes after two previous upgrades to Euro-area GDP earlier in the year. Moreover they continue to argue that the near-term risks are skewed somewhat to the upside.”
“The recent GDP upgrades have been to Italy and Spain where the recovery has strengthened in recent months, lead indicators have generally been strong and loan growth has picked-up. We now forecast 2.8% GDP growth in Spain in 2015 and 2.4% in 2016. Spanish growth this year is likely to be stronger than in the UK or the US. Italy is growing more slowly but the forecast changes if anything are more marked, having been in recession in the previous three years.”