April’s business surveys provided some tentative signs that the euro-zone economy may start to contract at a less rapid pace in Q2. But any improvement will be from a very low base. Indeed, the latest news suggests that the economy may have contracted by as much as 2.5% in Q1. This has led us to revise down our annual GDP forecast for this year from -4.0% to -5.0%. But the good news is that the sharpest quarterly falls in GDP should now be over.
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