KfW Business Cycle Compass Eurozone March 2016

We expect the economic recovery of last year to continue in 2016. In view of the bumpy start to the year on the financial markets and the current economic downturn in some emerging economies, we have adjusted our previous forecast for 2016 downward slightly from +1.8 to +1.6 %. For 2017 we expect price-adjusted GDP in the euro area to grow by 1.8 %.

Private consumption will remain an important growth driver in the euro area. Investment activity will continue to be slowed down by major uncertainties. In addition to worries over the development of the global economy and unresolved political issues in Europe, we consider the latest developments on the financial markets to be the main risk to our forecast.

KfW Business Cycle Compass Eurozone March 2016(PDF, 72 KB, non-accessible)

Press release