European Growth Outlook 02/2016

Europe defies global turbulence. However, growth is not yet self-sustaining

The economy of the European Union is likely to grow by 1.9 percent in 2016, the economy of the Euro area by 1.7 percent. However, the future development of the emerging market countries, migration flows towards Europe and geopolitical conflicts pose considerable forecast risks. The downward trend in prices has been successfully transformed into a modest rise and fiscal policy is expected to remain largely neutral in 2016.