Euro area set to grow this year by the fastest pace since 2007 – BBG Survey

In the latest survey conducted by Bloomberg News, the Euro area GDP is forecast to increase 2.1% this year, up 0.1 percentage point compared with the August survey.  

Economists see the 19-nation bloc growth rate rising at the fastest pace since 2010. However, the pace of growth may slow to 1.8% in 2018, though that’s still better than the August prediction and 1.5% predicted in 2019. 

Key Findings from the survey:

Survey of 58 economists conducted from Sept. 8 to Sept. 14

GDP to grow 2.1% this year, 1.8% in 2018 and 1.5% in 2019

Chance of a recession happening over the next 12 months is 10 percent, according to 11 respondents

HICP to average 1.5% this year, 1.4% in 2018 and 1.7% in 2019

ECB refi rate seen at 0.00% by end-4Q17, current rate is 0.00%

ECB deposit rate seen at -0.40% by end-4Q17, current rate is -0.40%

First 15 bps hike seen in 1Q19 versus 40bps hike previously expected