Published: Fri, November 10, 2017
Markets | By Lucia Cruz

European Union raises Turkey's growth forecast

European Union raises Turkey's growth forecast

The Commission said the euro area economy is on track to grow at its fastest pace in a decade this year, with real GDP growth forecast at 2.2 percent, adding that the European Union economy as a whole is also set to beat expectations with robust growth of 2.3 percent this year.

Berlaymont's 2017 Autumn forecast is substantially higher than the previous one of 1.7% in the spring, but the growth rate will slow slightly in 2018 to 2.1% and 1.9% in 2019, after years tackling the financial crisis.

Luxembourg's economic growth is projected at 3.4% in 2017, growing below expectations in the first half of 2017.

This repeated last year's pattern, when the EC repeatedly revised its estimate for Bulgaria upwards and, in the end, the actual gross domestic product growth figure ended up exceeding the final forecast by 0.1 percentage point, reaching 3.4 per cent growth.

Political anxiety has also decreased across Europe - as Germany, France and the Netherlands re-elected centrist, pro-EU governments this year.

The Commission also said that the French deficit this year would fall under the EU's limit of 3.0 percent of annual GDP.

The main reasons for this are positive macroeconomic and labour market conditions, high consumer demand and corporate profits, and money earned through Malta's citizenship scheme.

The increase follows the International Monetary Fund upping Turkey's 2017 growth forecast 2.6 percentage points on October 10, the World Bank raising its forecast 0.4 percentage points on October 19 and the European Bank for Reconstruction and Development's [EBRD] lifting it by 2.6 percentage points on November 7. Monthly government statistics to date suggest that the 2017 general government primary balance target (1.75 pct of GDP in terms of the ESM programme definition) will be met, with the balance of risks tilted to the upside.

US President Donald Trump begins Asia tour, lands in Japan
He told reporters on Air Force One en route to Asia that North Korea would figure prominently in discussions during the trip. Forces in those countries", the letter reads. "Then its regret is too late".

Saudi forces intercept ballistic missile fired at Riyadh by Yemen's Houthi rebels
A ballistic missile launched from Yemen was intercepted northeast of Saudi Arabia's capital, Riyadh, according to local media. The US, which is one of the kingdom's most important military suppliers, has backed the coalition with logistical support.

Bournemouth defender Ake up for clash with Chelsea ace Morata
We should have got three, maybe four goals to make the game easy. "I think Michy is improving a lot". But to win will be the ideal story and we fancy our chances".

"After five years of moderate recovery, European growth has now accelerated", EU Economy Commissioner Pierre Moscovici said.

However, the report noted that while the country is experiencing a very low unemployment rate and increasing skill shortages, wage growth has been limited, due to strong increases in labour supply, on the back of inflows of foreign workers.

The economies of all member states are expanding and labour markets improving, but wages are rising only slowly.

Throughout the European Union investment is picking up amid favourable financing conditions and considerably brightened economic sentiment as uncertainty has faded.

Domestic demand remains the primary driver of growth.

Unit labour costs are projected to rise faster than the euro-area average in 2018 and 2019.

The current account surplus is forecast to be close to 10% of GDP for 2017, pushed by strong growth in exports, especially service, and a drop in imports related to the contraction in investment.

Like this: