The growth outlook remains good, and will benefit in 2006 from the economic recovery in neighbouring Germany, lower oil prices and buoyant business/consumer confidence across the region. Convergence is still a strong driving force, and investment inflows are likely to remain high. But doubts remain about the timing of EMU entry, inflation is picking up in some areas, and political uncertainty is widespread. The background risk of banking crises or capital flight remains.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services