Economists boost eurozone outlook, see best year in a decade

New York - The eurozone economy just got another upgrade, with economists seeing the fastest expansion since before the financial crisis.

In the latest survey by Bloomberg News, gross domestic product is forecast to increase 2.1% this year, up 0.1 percentage point compared with the August survey.

The revision - the eighth positive reassessment over the past year - comes just over a week since the European Central Bank also issued its own more optimistic assessment, with a forecast of 2.2%.

Expansion in the 19-nation economy last hit 2.1% in 2010, though it’s not been stronger since 2007. The pace of growth may slow to 1.8% next year - though that’s still better than the August prediction - and 1.5% in 2019. That would be the weakest pace since 2014.

While economists have regularly upgraded their 2017 outlook for economic growth, they’ve been less optimistic regarding inflation, and that remained the case this month.

Looking ahead, consumer prices are seen rising just 1.1% in early 2018, before rebounding to 1.6% by year’s end and then averaging 1.7% in 2019.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

ZAR/USD
16.87
(-0.68)
ZAR/GBP
21.59
(-0.41)
ZAR/EUR
19.78
(-0.24)
ZAR/AUD
12.12
(+0.04)
ZAR/JPY
0.16
(-0.58)
Gold
1902.30
(-0.74)
Silver
24.13
(-3.42)
Platinum
883.00
(-0.00)
Brent Crude
42.14
(-3.94)
Palladium
2257.73
(-0.96)
All Share
53191.60
(-0.24)
Top 40
49109.73
(-0.09)
Financial 15
9281.49
(-2.50)
Industrial 25
71776.83
(+1.07)
Resource 10
53535.60
(-0.73)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1325 votes
It depends on how the funds are used.
73% - 8695 votes
No. We should have gotten the loan elsewhere.
16% - 1917 votes
Vote