Eurozone’s economic expansion remains solid and broad-based, and is expected to sustain its strong momentum into next year, the European Central Bank said in its regular bulletin.
“Overall, incoming data are generally pointing to unabated upside growth momentum in the fourth quarter of 2017 and around the turn of the year, with robust growth expected to continue in 2018,” the ECB said.
That said, the 19-nation economy still need the support from abundant monetary stimulus to see a return of inflation to near 2 percent, despite a strong and broad-based expansion in output, the bank said.
The ECB Staff raised the growth projections for euro area in its latest round of forecasts. They now see 2.4 percent growth for this year, 2.3 percent for 2018, 1.9 percent for 2019 and 1.7 percent in 2020.
The ongoing recovery is led by domestic demand, supported by growth in private consumption, investment and exports, the report noted. Labor markets continue to exhibit strong dynamics and the improvements are likely to continue, the ECB said. The report also mentioned increasing signs of labor shortages in some countries and sectors.
Further, the ECB expects the housing market recovery to continue to drive growth, thanks to favorable financing conditions, portfolio shifts and rising income due to robust job creation.
Source: RTT News