EUROFRAME - European Forecasting Network. Economic Assessment of the Euro Area: Forecasts and Policy Analysis Autumn Report 2006. Special Policy Issue: Macroeconomic Differentials and Adjustment in the Euro Area: Stylised Facts and Policy Implications. September 2006

Author, No (2006) EUROFRAME - European Forecasting Network. Economic Assessment of the Euro Area: Forecasts and Policy Analysis Autumn Report 2006. Special Policy Issue: Macroeconomic Differentials and Adjustment in the Euro Area: Stylised Facts and Policy Implications. September 2006. UNSPECIFIED.

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Abstract

Euro Area growth has picked up in the first six months of the year, with GDP growing by 0.8 per cent in the first quarter (quarter-on-quarter) and 0.9 per cent in the second quarter. This represents a considerable improvement on the average growth of just 0.5 per cent in the second half of 2005. The upturn was expected six months ago, but has been somewhat stronger than anticipated. This revision is due to unexpectedly strong export and investment growth in the Euro Area which has been boosted by unusually prolonged period of strong world economic growth. We do not expect growth to accelerate further in the second half of the year and anticipate a deceleration in growth from the last quarter. Overall, Euro Area GDP growth is expected to be 2.6 per cent for 2006.

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