Further economic recovery is likely to continue in 2016, thanks to the consistency in ECB’s accommodative monetary policy, tax cuts and gradual recovery in the construction sector supported by the Investment Plan for Europe. However, the slow revival of EU demand will likely weigh on the export growth.
The steady improvement in labour market and rebound in asset prices have greatly encouraged domestic consumption in the Netherlands, while soft energy prices, lower financing costs and higher corporate savings have underpinned investment. Nonetheless, with the fading out of the knock-on effects from previous stimulus programs, the Dutch economy will likely see a mild slowdown in growth to 1.7% in 2016. More
Fiscal consolidation, banking sector restructuring and structural reforms have spurred a recovery of the Spanish economy. Buoyant household and business confidence, plunging energy costs and a weaker euro have also added strength to the economy amid falling unemployment.
The mild pick-up of domestic demand as a result of low oil prices and tax cuts has been favourable to private consumption, and easing credit conditions as well as the recent supportive economic strategies are conducive to private investment. The French economy is expected to grow on the back of improvement in export performance. More
The renewed declines in oil price, a benign labour market and favourable financing conditions have helped sustain domestic consumption and therefore the German economy, resulting in a faster GDP growth estimate for 2015. Due however to weaker global growth momentum and increased geopolitical tensions, the Russian-Ukrainian crisis and debt spiral in Greece have weighed on consumption and business confidence. More
The UK has voted to leave the EU in a historic referendum. This has not only sparked immediate shockwaves across the global financial market, but also unleashed uncertainties over the future arrangements for Brexit. While the impacts of Brexit should be less significant in Asia, it would still be inauspicious for Hong Kong companies with an interest in the UK. More