Euro-zone economic outlook

Euro-zone economic outlook

After a sharp slowdown in Q2, real GDP growth in the euro area is expected to remain subdued until Q1 2012. The loss in GDP momentum owes to a stronger than expected weakening in global demand and self-reinforcing negative impulses from the following: the deepening of the sovereign debt crisis, financial markets turbulence and a worsening of business and consumer confidence. This deterioration of the economic climate is weighing on domestic and external demand.

Investment is projected to grow slowly in the next quarters as a result of weak economic fundamentals and financial market tensions. Private consumption growth will also remain fragile over the forecast horizon, in a context of precautionary savings and lacklustre real disposible income. Under the assumption that oil price stabilizes at USD 110 per barrel (in Q4 and Q1 2012) and that the euro/dollar exchange rate fluctuates around 1.37, inflation is expected to decelerate sharply over the forecast horizon.

consumptions, euro zone, forecasts, forecasts eurozone, forecasts ezeo, GDP, inflation, investments, IPI, production, statistics flash
National accounts
document typology:
Press release
Reference period
III quarter 2011
Date of publication
Friday, 7 October 2011
Full text
(pdf 325 KB)

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