Eurozone: Buyer beware – BNPP

Research Team at BNP Paribas notes that the Eurozone’s economic recovery has proven to be resilient to adverse shocks.

Key Quotes

“Domestic demand, the key driver of growth recently, is set to slow into 2017, however, on the back of higher headline inflation and a slightly less loose fiscal stance.”

“On our estimates, slack will be absorbed only very gradually. While higher headline inflation is likely to have some spillover effects on core inflation, we continue to expect underlying price pressures to remain exceptionally subdued.”

“The global outlook and domestic fiscal policies could turn out to be more supportive than we assume in 2017.”