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Europe Maintains Strong and Broad Based Growth, 2018 Outlook Solid

Feb 14, 2018

The ECB may have to reconsider some of their current policies. This is one of concepts explored in the Bloomberg news article titled “Euro-Area Economy Keeps Cruising Speed as Outlook Improves” and written by Piotr Skolimowski. European economies, on average, have fared well early in 2018 riding the upward momentum from the end of last year. GDP across the region has risen 0.6% from October 2017-January 2018. Growth in nations such as the Netherlands and Portugal has accelerated, and the European Commission posits that economic expansion across the EU is more equally distributed than it has been at any point since the global financial crisis. All of this has led to speculation as to whether or not the ECB will begin to tail off the massive stimulus provided to buoy many nations.

ECB President, Mario Draghi, has worked to quell the notion that this is the case. Despite acknowledging the growing economic strength of the region, Draghi cautioned that withdrawing stimulus aide too quickly could cause a severe economic slide for many still recovering nations. This is supported by factors such as a consumer-price growth metric that slowed to the lowest rate since July.

This is a situation for investors, especially those with European exposure in the portfolios, to monitor. Already in a highly volatile state, any decision made by the ECB could have repercussions that translate to global stock markets. While no decision seems imminent, vigilance could reap rewards for current or potential investors.

To read the full article click here.