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Eurozone | A shift to more moderate growth with increased downward risks

Published on Tuesday, July 24, 2018 | Updated on Thursday, July 26, 2018

Eurozone | A shift to more moderate growth with increased downward risks

Confidence seem to level off pointing to a steady growth in 2H18. The 1Q18 slowdown in activity added to increasing uncertainty and higher commodity prices lead us to slash GDP growth forecasts to 2% and 1.7% in 2018-19. Higher oil prices and a weaker euro increase our headline inflation forecasts to 1.7% and 1.8% for this year and next. Trade war risks have intensified.

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