Monday, September 15, 2014

Eurozone continues to be the ‘black sheep’ of recovery – TVI24

Eurozone continues to be the 'black sheep' of recovery – TVI24

In addition to having downgraded the outlook for growth in most advanced economies, the Organization for Economic Cooperation and Development (OECD) reveals that the euro zone continues to be “the black sheep” of recovery. The sphere of the single currency today presents a risk of deflation that could worsen the debt crisis, according to interim economic assessment, released this Monday.

The OECD predicts that the Gross Domestic Product (GDP) Eurozone will increase 0.8% this year, less four tenths from the estimates of May. For 2015, GDP is projected to be 1.1%.

Estimates for the United States were also corrected downwards, although he admits that the expansion go on track. Estimated, therefore, that the economy of the country this year grow 2.1% compared to 2.6% in May and 3.1% in 2015, against 3.5% in the previous estimate.

In the eurozone, the OECD only the data for the three largest countries: Germany, which in 2014 and 2015 is expected to grow 1.5%; France, which should improve their economic activity by 0.4% this year and 1% in 2015; Italy, which this year will maintain a slump of 0.4% and only 0.1% will recover in 2015.

Already in the large emerging economies, the OECD predicts that China will grow 7.4% this year and 7.3% in 2015

As for Brazil, the GDP is expected to advance 0.3% in 2014 and recover 1.4% in 2015, while, on the Brazilian economy, weigh the uncertainties policies and the need to introduce monetary and fiscal measures.

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