The recovery of the Eurozone "is gaining momentum": real GDP has increased for four quarters in a row and financial market confidence has "improved significantly". This is what we read in the final report of the monitoring mission of the International Monetary Fund in the Eurozone, which specifies that despite this the recovery "is neither robust nor solid enough, given that aggregate demand is weak and weighs on the actual business".
In any case, "complementary policy actions have supported demand, fueled investor confidence and eased financial conditions". At the national level, governments "have made further progress" in getting their finances back on track and implementing structural reforms to boost competitiveness. After the contraction of 0,4% last year, the Eurozone economy is therefore returning to expansion and – according to the estimates contained in the final report of the monitoring mission – it will grow by 1,1% this year, '1,5% next, up from 1,7% in 2016, settling at 1,6% through 2019.
Eurozone GDP estimates are slightly revised compared to those released in the latest World Economic Outlook of April (which will be updated on 24 July) where growth of 1,2% was forecast in 2014 (1,5% in 2015). The unemployment rate, which stood at 2013% in 12, will drop to 11,7% this year and to 11,4% in 2015, decreasing steadily to 9,4% in 2019. The debt public will rise this year from 95,2 to 95,9% of GDP, then fall to 94,9% in 2015, then after a further decline in subsequent years, it will settle at 86,3% of GDP in 2019. The deficit, which stood at 3% of GDP last year, will drop to 2,7% this year and 2,1% in 2015, then fall steadily to 0,4% of GDP in 2019.
