European growth has peaked

Thursday 29 March 2018

Here’s the chart to lead us off:

That’s what a tearaway currency will do to you. Now other components of European boomlet are on the turn, via Westpac:

With the benefit of hindsight, we believe that 2017 will be seen as this cycle’s peak year for Euro Area growth. Against the 2.5% year-average outcome for 2017, we foresee growth of 2.1% in 2018 then 1.6% in 2019. While a little more optimistic, the ECB has a similar view, expecting growth of 2.4%, 1.9% and then 1.7% in 2018, 2019 and 2020 respectively.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.