The European economy appears to have weathered the initial impact of the UK’s vote to leave the European Union reasonably well. However, the vote could yet have important indirect effects by fuelling euroscepticism elsewhere in the region and hence contributing to the already high levels of political uncertainty ahead of a series of key elections and votes in the coming quarters. Alongside several adverse economic forces – including rising inflation – these mounting political risks are likely to weigh on activity, with euro-zone GDP growth slowing from around 1.5% this year to a belowconsensus 1.0% or so in 2017.
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