Growth supports to fade in 2016

The stronger-than-expected performance of the euro-zone economy in 2015 and the additional policy support recently provided by the ECB might appear to provide the conditions for a further improvement in the currency union’s outlook in 2016.

But two of the key forces which boosted growth this year, namely the effects of the falls in oil prices and the euro, are set to fade next year. Accordingly, the pressure on the ECB to extend its support still further is likely to grow.