Eurozone key themes 2024 – A fragile recovery will gain impulse
After a year of stagnating activity, the eurozone economy will continue to struggle to gain traction in the near term given multiple headwinds. But we expect a gradual recovery in 2024 that will gather momentum as consumers regain some of their lost purchasing power and financial conditions ease.
What you will learn:
- Inflation will fall faster than the market and the ECB expects. This means we expect the European Central Bank will cut rates more aggressively than the market anticipates.
- Following the current weak patch, easing financial conditions, a recovery in consumers’ real incomes and strong household balance sheets, improved global demand, and a cyclical upswing in industry will lead to stronger growth in the second half of 2024.
- Fiscal policy will represent a rising drag to growth, as government priorities shift from providing support to deficit reduction.
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