Transcript
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Economic outlook for the Euro Area
Matthieu Grouès,
C.I.O.
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Indicators point to another quarter of small contraction
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Uncertainty has been on a rising trend
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The recession owes as much to uncertainty than to fiscal tightening
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Fiscal retrenchment will remain a drag on growth
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The Euro has not been that weak for ten years
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This should help exports
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Corporate investment never really rebounded
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The change in inventories is already very negative
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What to expect next year?
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The euro area crisis is as much a crisis of budget
balances as of current accounts
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Some countries have corrected both imbalances
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Some have had more mixed results
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The ECB has been very proactive
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But there are wide disparities in financial conditions
between countries, hence the last annoucements
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