European Economic Forecast – Spring 2016

European Economy Institutional Papers are important reports and communications from the European Commission to the Council of the European Union and the European Parliament on the economy and economic developments.

In the Spring of 2016, the economic picture in Europe was that of an ongoing but fragile economic expansion amid fading tailwinds and growing headwinds as global growth had been slowing and trade flows remained weak while financial markets somewhat stabilised and funding conditions remained favourable. Domestic demand was expected to drive growth although private and public consumption were forecast to lose momentum. Conditions were favourable for a pickup of investment, and net trade was expected to be a drag on growth this year. Inflation remained driven by energy prices, labour markets continued to improve and the fiscal stance was to be slightly expansionary this year. Downside risks were considerable.

European Commission: DG for Economic and Financial Affairs: Statistical Annex of European Economy Spring 2016 https://ec.europa.eu/info/sites/info/files/file_import/ip025_statistical_annex_ee_spring_2016_en_2.pdf

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