News from 2018-10-02 / KfW Research
The long climb out of the crisis low: investment recovery in the euro area continues
It has been ten years since the financial crisis began but the consequences for European investment activity are still visible. As a result of the corrections made to previous excesses, high risk premiums and consolidation efforts, the investment rate is only slowly returning to its pre-crisis level. What is more, significant asymmetries have developed between the large euro countries.
Investment recovery is of enormous importance for the European economy. Without innovative technologies, modern machinery and infrastructure, Europe will not be able to harness its economic potential and will lose competitiveness. So it is positive that investment continues on a growth path. On the basis of an econometric model, KfW Research expects real gross fixed capital formation to grow by 2.8 % this year and 2.4 % next year.
The long climb out of the crisis low: investment recovery in the euro area continues
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