European Economics

European Economics Weekly

3 August, 2018

Further slowdown in Q2, but surveys bode well

Disappointing euro-zone Q2 GDP data published this week have made our forecast of a 2.2% rise in GDP this year look optimistic. But July’s business surveys were more upbeat and suggest that a marked slowdown is unlikely to materialise. Meanwhile, the rise in Italian government bond yields reflected renewed concerns over the Government’s planned fiscal expansion.

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