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EU Spring 2016 Economic Forecast: Staying the course amid high risks
The European economy continues to expand modestly. Low oil prices, the relatively low exchange rate of the euro, very ample monetary policy and slightly supportive fiscal policy will continue to underpin growth this year. However, the lift from cheap oil is set to gradually wane and the lagged boost from the euro’s depreciation will soon have run its course. As a result, the pace of private consumption growth, the main motor of growth so far, is projected to slow down somewhat next year, even though employment gains and a modest acceleration in wage growth should partly compensate for the fading of these tailwinds. ... (full story)