Growth projections for Euro area upgraded

The International Monetary Fund (or IMF) has revised its growth projections for France, Germany, Italy, and Spain. Growth projections for Germany (FGM), France (EWQ), and Italy (EWI) were upgraded by 0.2% for 2017, and 0.1% for 2018. Spain (EWP) had a higher upgrade to growth expectations, with a change of 0.5% for 2017 and 0.3% for 2018. An increase in domestic demand in the recent quarter was one of the key reasons for this change in outlook. Reduction in political uncertainty after market-friendly election outcomes in member countries also added to the positive outlook.

Why the International Monetary Fund Expects Continued Euro Growth

Outlook for emerging and developing Europe

The IMF has also improved its growth projections for emerging and developing European countries. Key economies that are likely to expand include Turkey (TUR) and Russia (RSX). Growth projections for emerging and developing countries in the Euro area are 3.5% and 3.2% for 2017 and 2018, respectively. Improvement in trading conditions within the Euro area, coupled with an uptick in exports, led to growth projections being revised higher.

What lies ahead for the Euro area?

The outlook for the Euro area remains optimistic, with key economic indicators signaling improved economic activity. Investors should focus on incoming data to better understand growth in the area. The European Central Bank plays an important role in this region as it needs to carefully manage the stimulus program and make sure the region continues to follow a path to recovery.

Latest articles

23 Jul

Google Ups the Ante for Ad Targeting

WRITTEN BY Ruchi Gupta

Google has announced that it's going to start adding third-party ad targeting and browser privacy restrictions to Google Chrome.

23 Jul

Will Fortinet Beat Q2 Earnings Estimates?

WRITTEN BY Aditya Raghunath

Leading cybersecurity company Fortinet (FTNT) is scheduled to announce its second-quarter earnings results on August 1. What should we expect?

Harley-Davidson’s Q2 earnings were slightly better than estimates.

Netflix (NFLX) has long relied on international markets to drive its streaming video business growth.

23 Jul

Could Ford’s Q2 Earnings Push Its Stock Even Higher?

WRITTEN BY Mohit Oberoi, CFA

Ford's second-quarter earnings results are scheduled for release on July 24. So far, Ford stock has outperformed its legacy peers.

23 Jul

Why RBC Isn't Optimistic about BlackBerry Stock

WRITTEN BY Aditya Raghunath

Shares of BlackBerry (BB) have been volatile over the last 12 months. BlackBerry stock fell 40.5% from $12.0 in September 2018 to $6.57 in December.