Tag Archives: euro area investment spending

We are sticking to our forecast of 2.0% euro area GDP growth for 2018, but with risks tilted to the downside. Investment is an important driver of the business cycle and a key determinant of potential growth. In the euro area, total investment makes up about 20% of GDP. Construction, machinery and equipment (including weapons systems), intellectual property rights and agricultural products account, respectively, for...

We are sticking to our forecast of 2.0% euro area GDP growth for 2018, but with risks tilted to the downside.Investment is an important driver of the business cycle and a key determinant of potential growth. In the euro area, total investment makes up about 20% of GDP. Construction, machinery and equipment (including weapons systems), intellectual property rights and agricultural products account, respectively, for 48%, 32%, 18% and 2% of total investment. Machinery and equipment spending...

We remain relatively upbeat about euro area growth, but the pressures on banks are a concern, and decisive pro-investment moves remain in abeyance Leaving aside the possible disruptions surrounding the Brexit referendum and other near-term political events, a number of fundamental factors — most notably strengthening domestic demand — mean we are cautiously optimistic about the euro area economy over the short term, with an above-consensus GDP growth forecast for this year of...