20
Jun
The economic trend in the Eurozone strengthens
GDP growth accelerates to +1.9%. Franco-German couple rekindled. Fall in political uncertainty. Clear increase in company profits. Consensus is optimistic.
Key points
- The Eurozone is still able to produce surprises, with a stronger than forecast economic trend
- Better growth prospects for the Eurozone in 2017
- Reforms in France versus fiscal expansion in Germany?
- Real terms interest rates remain negative despite waning inflation
- Consumer confidence is at its highest since 2008
- The ECB is laying the groundwork for gentle “normalisation” of its monetary policy for 2018
- European company profits are confirming our positive expectations in 2017
- The consensus is now much more optimistic and is regularly revising its profit forecasts upwards
