Yahoo Finance Euro-Zone Economy Seen Picking Up Pace as Germany Heals
(Bloomberg) -- The euro-area economy will expand more quickly than previously thought this year as the bloc’s biggest member exits more than a year of near-stagnation, a Bloomberg poll of analysts showed.
Most Read from Bloomberg
Trump Vows ‘Day One’ Executive Order Targeting Offshore Wind
China to Start $138 Billion Bond Sale on Friday to Boost Economy
Putin Names Economist as Defense Minister in Surprise Reshuffle
Global Chips Battle Intensifies With $81 Billion Subsidy Surge
Output in the 20-nation currency union will rise by 0.7% in 2024 — more than the 0.5% advance that was forecast in the last monthly survey. Gross domestic product in Germany is now seen increasing by 0.2% compared with 0.1% before.
The results, which also include upgrades to the outlooks in France, Italy and Spain, capture the improving mood in the region. First-quarter GDP readings surprised to the upside, inflation is receding toward 2% and the European Central Bank is gearing up to start lowering interest rates.
Respondents in the survey predict three quarter-point reductions this year in the deposit rate, which currently stands at 4%. That’s about in line with the view of money-market investors.
ECB President Christine Lagarde said last month that the euro zone economy is “recovering and we are clearly seeing signs of recovery.”
The survey sees euro-area inflation edging toward 2% over the coming quarters and and hitting that level in the second qurter of next year.
--With assistance from Ainhoa Goyeneche.
(Updates with inflation path in final paragraph. An earlier version of this story corrected the spelling of euro area.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
