Q1 GDP data released over the past month paint a grim picture, with most economies in the region contracting at a record pace. This is unsurprising given the meltdown in the region’s banking sector at the start of this year. With the worst of the financial crisis apparently behind us, the pace of decline in the real economy should start to slow. Indeed, a slowdown in the rate of de-stocking could even cause a bounce in GDP over the coming months. But a lasting return to positive growth remains dependent on a sustained recovery in the euro-zone and global risk appetite. For now, at least, we remain cautiously pessimistic.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services