Eurozone recovery is continuing – BNP Paribas

Analysts at BNP Paribas explain that the Eurozone’s recovery is continuing, although it has been weaker than expected at the start of the year.

Key Quotes

“Intra-EU trade grows with domestic demand, especially corporate investment.”

“Inflation has rebounded in the wake of higher oil prices, but the core CPI trend remains subdued. This argues for the ECB to maintain the status quo on the refinancing rate for a long period of time.”

“France

Growth slows down but remains above potential. Households’ consumption should get a boost from the planned tax cuts and the jobs recovery but inflation reduces purchasing power gains. Business investment dynamics remain favourable. The global backdrop is less supportive. A slight rise in core inflation is appearing but remains to be confirmed.”