Business Irish

Saturday 10 December 2016

Fitch predicts Eurozone weakness

Published 18/08/2015 | 02:30

Ratings giant Fitch has said that while the Eurozone's short-term outlook has improved, the medium-term growth prospects are generally weak.

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The ECB's trillion-euro boost for the currency block, it seems, isn't proving sufficient to lift economists' confidence in the region's recovery. Fitch said high debt and structural weaknesses will weigh on the recovery, and potential growth is weak compared with other major advanced economies.

Barely a quarter of the respondents in a Bloomberg survey see the currency bloc's outlook improving in the short term.

That's the lowest level since the European Central Bank (ECB) started its stimulus programme to buy €60bn a month of debt through September next year.

"The ECB may be forced to strengthen its language and, if insufficient, put its money where its mouth is," said Elwin de Groot, a senior market economist at Rabobank International in Utrecht in the Netherlands. "Let me stress that we haven't reached that point just yet."

Irish Independent

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